- Small business loans allow Bitcoin holders to earn interest
- Interest rates of between 10% and 35% on offer
From now on, cross-border payments firm Bitbond will allow Bitcoin holders to earn interest on their holdings. This is made possible through loaning the funds to small business owners.
Bitcoin was all the rage at the end of 2017, and based on the returns of some traders using the currency for international money transfers, its story is far from over. Some investors are short-term holders, while others are planning to hold onto the popular cryptocurrency for longer periods of time.
The interest rates regarding Bitcoin are intriguing, and they’re certainly better than what you might expect at a typical bank. Now, Bitcoin holders can fund loans to small business owners on a global scale, while earning interest on their cryptoholdings. Bitbond is willing to offer interest rates ranging from 10% to 35%. When the year is over, you can expect to receive around 13% return on your investment.
In order to reduce risk, the AutoInvest tool will help you build a diversified portfolio of loans, and you can start with as little as $5.00 (£3.60). Bitbond also offers to screen borrowers, performing a video identity check and assessing their creditworthiness.
For the purposes of income verification, small business owners are required to grant access to their business accounts such as PayPal, Amazon, eBay, bank accounts, etc. The machine-learning algorithms evaluate the data and a manual reviewer then assigns a grading from A to F, which plays an instrumental role in determining the risk level of that loan. While lower risk loans are more likely to be paid in full, they bring in less money compared to high risk ones.
For those who would like to a get a loan for their small business, it is easier to get approved by Bitbond compared with other loan service providers.
