I will mainly answer the questions related to the company business model. We will talk about risks, revenue and the exact mechanism of financial department work.
Let’s get started!
How does BitcoLoan work?
This question is both one of the most complicated and interesting ones. Let’s start with understanding what Bitcoloan really is. First of all, our service is a lending marketplace where everyone can get a crypto loan or issue a loan and earn on it.
That is to say, we connect those people who need a loan and those who can give it out. We help people make money and deal with financial difficulties. Apart from that, we find lenders for borrowers and act as intermediary while taking care of all the paperwork, risks and extra costs.
How do you find borrowers? Why does it happen so fast?
Our clients are offered a range of requests for any need. This has been made possible thanks to our affiliate companies. We are currently working with 200+ companies in 23 countries. It is thanks to them that we have a constant flow of loan requests.
All requests are sent to a single database from where our technology selects an ideal loan for the investor on the terms that they request.
We are constantly working to increase the number of affiliates to make our network as large as possible. This is the only way we can make progress.
What is the BitcoLoan Technology?
Of course, our chief technical officer would be a better candidate to talk about it, but I will try my best to explain to you what BitcoLoan Technology is in turns of business.
Primarily, technology is our main resource. BitcoLoan would not have existed without it. With its help, we’ve managed to reduce the matching process time by 185%. In comparison to the competition, our matching is 473% faster. The continuing Machine Learning, in turn, allows us to better the matching efficiency by 14% on average.
I think you get it by now that it is the BitcoLoan Technology that helps our clients make up to 1.5% a day. Soon, the daily profit will also increase in number!
How do Business Loans work? Are they different from an Individual Loan?
Our company works with two loan types.
The first one is an Individual Loan. It is designed for one borrower and its average loan amount is no more than $5000, while the average loan term is 90 days. Such loans are short-term and involve a single borrower. It allows us to find a perfect borrower for any investor.
The second loan type is a Business Loan. They differ in that they require several investors. It happens because a Business Loan implies a larger loan amount. The average amount is around $870,000. The loan term can be up to a year.
Another notable feature of a Business Loan is that investors make a profit only after the whole loan amount is raised which may take some time.
According to our intel, 84% of BitcoLoan clients prefer this loan type as a long-term and highly profitable investment.
What will happen if a borrower fails to repay a loan?
As it is known, lending can impose some risks. Even when you lend some money to your neighbor, no one is immune from accidents standing in their way to meet their financial obligations. Therefore, we have been prepared for such an outcome.
I will describe this situation from two perspectives: the borrower’s and the investor’s.
If a borrower fails to repay the loan, the investors will not spot any difference. They continue to get the daily profit in the same amount. The Bitcoloan intermediation is what makes it possible. In other words, we take care of the borrower's financial obligations and repay their debt.
For the borrower, in case they cannot repay the loan, the situation can be different. We contact them and negotiate new loan repayment terms.
What is in it for BitcoLoan? What is your annual revenue?
Of course, there is some difference between the investor's profit percentage and the borrower's repayment interest which constitute the Bitcoloan share. This difference can be as much as 0.7%. However, that doesn't necessarily mean that we just take it away.
Most of this amount goes to the sinking fund, payment settlement, the company development, and the employee salaries. As a result, the net profit reaches a maximum of 0.15%.
Nevertheless, it is thanks to large funds flow that we have the opportunity to develop the company. We will tell you more about our annual profits and other financial performance at the end of this financial quarter. We will publish a big report where you will learn all the details!
What awaits BitcoLoan in the future?
BitcoLoan is a large ecosystem which comprises a range of various products and elements. They all move toward full decentralization.
We are already in the final stages of preparation. Right now we are working on a new investment product which will complement the BitcoLoan Protocol. You will find out about it next week.
This stage distinctive feature is that the final decision will be made by you, the BitcoLoan community. I can’t tell you more about it just now, so keep a close eye on our blog news and seize the moment!
I’d like to remind you that the Tier#2 Private Sale will end this Monday. This is your last chance to get the token at its current price. Don’t miss it!I hope that I’ve managed to help you understand BitcoLoan better. Next weekend, we will publish a similar article from a different expert. And I can't leave you without a gift! Use promo code *CFO10* to get a 10% bonus on your investment. It's valid for the next 72 hours. Thank you for your attention!