BitLendingClub beats BTCJam in Bitcoin loans volume!

Online bitcoin loans marketplace BitLendingClub has announced via a blog post that it has officially become the world’s biggest bitcoin lending marketplace by servicing more than $430,000 worth of loans in June. With this, the company defeated its closest competitor BTCJam which served $415,000 for the same time period.

However, the success didn’t come to the company overnight, and they had been working hard for the past several months. The blog post reiterates company’s commitment to improve in various areas namely,

  1. Loss Rates – The Company focused on bringing down the loss rates and since March 2015, it has reduced it by more than 50%.
  2. Loan Voting – Since users vote up for the best loans, the best ones come to the front-page and attract more lenders.
  3. User Referrals – The new referral program launched by BitLendingClub was a huge success. User referrals brought in 30% of the new customers, which contributed to 40% of new user loan volume in June. Statistically speaking, each referrer brought in 4 new users for BLC.

Association with Boost VC benefited BLC

BLC recognizes that its association with startup accelerator Boost VC has helped them in more ways than one. The team now focuses on one task at a time instead of dissipating energy into different projects. They also listen more carefully to customers’ feedback and always ensure that customers receive the best service that they rightfully deserve.

Future Growth

The bitcoin loans company sees “a massive opportunity in bringing affordable lending to the countries where the banking system is failing them.” With crises now emerging in Eurozone and South America, the company may make inroads into these regions as well. For a nation such as Greece, which is running out of cash and faces an uncertain future, affordable loans could provide temporary comfort.

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Global Bitcoin P2P lending platform Bitbond has raised 600,000 euros in second tranche of angel funding. The platform’s total funding for the round has now reached 800,000 euros.

The prominent angel investors this time included Florian Heinemann and Uwe Horstmann (Project A), Christian Vollmann (early investor in ResearchGate), and Felix Jahn (co-founder of Home24).

Bitbond will utilize the funding to expand its customer base and make a highly pronounced impact on emerging markets.

Bitbond, which was introduced in 2013, has processed over 600 loans with the number of registered customers touching 10,000 from over 120 countries.

Radoslav Albrecht, founder & CEO of Bitbond said: “The additional resources will help us to continue realizing our mission which is to make lending and borrowing globally accessible. We are happy to have such experienced investors supporting us on this exciting journey.

On the development, angel investor Christian Vollmann commented that, “Currently over 50% of small businesses are underserved by banks and don’t have access to credit. Bitbond provides a technological solution to this problem. It’s great to see such an innovative approach being developed in the Berlin startup scene.

The International Finance Corporation of the World Bank estimates that the global credit gap of microenterprises and SMEs is approximately $2trillion. Bitbond, with its easy global lending policies, aims to fill this gap by providing Bitcoin loans to small and medium sized businesses.

Upon receiving its first funding in 2014, Bitbond made great technological strides by introducing exchange rate pegged loans to allow borrowers and lenders to minimize the risks associated with Bitcoin price fluctuations.

About Bitbond

Bitbond allows small businesses – who need financing for their operations- list their loan request on Bitbond after successfully completing a credit check. The loans are then funded by individual and institutional lenders who charge interest on their Bitcoins.

As interest rates across the world plunge to record lows, some even in the negative territory, savers are left with insignificant or no returns on their bank deposits. Other investment classes such as stocks and real estate are already kissing stratospheric levels, which makes them more risky comparative to the returns intended.

But, savers need not lose heart, for there is another way to earn great returns, and yes, it is completely legal.

The digital currency Bitcoin can also be borrowed and lent as loans at rather attractive rates, both for borrowers and lenders.

For Borrowers

The complete process of applying for a Bitcoin loan is pretty simple.

Just like in a bank, where to apply for a loan, an account is needed, similarly, while applying for a Bitcoin loan, the borrower has to set up an online account at a website which facilitates Bitcoin loans. Users will then be asked to verify their details before proceeding to the next step.

The next step requires the borrowers to enter the amount of loan, the time period of the loan, and the interest rate which he is willing to pay on the loan. If there is a lender who is ready to lend at the suggested terms and conditions, the loan process is completed.

It goes without saying that those seeking loans should maintain the highest level of integrity and make timely interest payments, in order to keep the account in good standing. Having a good online repayment history also helps in securing more loans.

For Lenders

Holders of Bitcoin who are ready to share their Bitcoins for some extra profit can consider lending to the loan seekers.

A great aspect of lending is that the high volatility risk has been eliminated. Bitcoin and other cryptocurrencies, including Litecoin and Dogecoin, are high-risk currencies, and investors with a low-risk appetite may find lending a great way to earn returns.

But, it must not be forgotten that the borrower might miss out on payments or never pay back. One way to mitigate this risk is by lending only a small number of Bitcoins and doing a background check on the borrower.

Bitcoin Loan Websites

Commercial financing backed by Bitcoin and other altcoins has gained a lot of traction in recent times, with websites providing such services mushrooming in conjunction with the expanding Bitcoin ecosystem.

Some of the prominent Bitcoin loan websites are:

BTCjam and BitLendingClub provide updated information on the loan listings, which includes amount, interest rate, percentage of amount funded, the remaining time period, expected annual percentage return (APR), ratings (or reputation), and others.

Bitbond is another well-renowned name in the Bitcoin loans industry and has catered to over 500 loans with parties from over 120 countries.

A non-commercial player, Kiva also assists in Bitcoin financing to underprivileged communities to help them with the purchase of equipments, higher education, and other basic needs.

For those who are looking to loan or borrow Bitcoins, the above sites could prove to be immensely helpful.