Lenders and borrowers can both benefit from AssetStreams’ system:
- The lenders can benefit from the automatic matching feature or opt for the manual option.
- Borrowers that have reached the fundraising phase by collecting the required amount of votes or finding a local agency will be waiting for the lender whose’ criteria matches with theirs.
- Borrowers can also set the interest rate (that will be fixed) between 7-15% maximum. The deadline comes in terms of 6 months to 3 years maximum.
If this sounds exciting for you, find a detailed guide below.
How does the lender find me?
As a borrower, you will be required to upload some documents about your company and cover the criteria outlined by the platform.
Here is what you’ll need to have indicated on your profile:
- Type of Business
- Registered Capital
- Company Financial Status
- Collateral Asset
After all of the information has been uploaded, it will be up to the lender to find you. Yes! You don’t have to go through hours and sometimes even days looking for a lender, the lender will do it for you.
The automatic matching process is the most significant advantage of the AssetStream platform.
All that needs to happen for a match is that the criteria that the lender requires match your resources and you (as a borrower) has already met the second phase – fundraising phase.
So for example, if you want a lender to match with you, you should match the following criteria:
- Interest rate (%)
- Duration of the loan project
- Credit rating
Once the match is made, a smart contract will be created, that will store all of the needed information. Once the borrower confirms the application, the funds will be immediately credited to his or her account. No waiting in lines, or waiting for days due to slow processing platforms. The Blockchain system of AssetStream (Stellar Protocol) is able to process transactions within seconds.
The smart contract will be available for all parties involved to see and study for maximum transparency.
Manual matching is up to the lender. He or she will be able to scroll through all of the applications on the platform, that had already achieved the second phase – fundraising phase, with a few filter tools of course. The information provided by the borrower, such as:
- Required Amount
- Interest rate
- Duration of the project
Will be displayed for the lender to see and approve if the terms are acceptable. Once the match is made, the smart contract process begins.
Are you ready to find your next lender?
To showcase the advantages of AssetStream we need to break down the whole process. Which takes only several steps:
- Filling information
- Waiting to be matched
The process above can take just a few hours if the number of lenders and borrowers on the platform are similar. But this doesn’t mean that lenders can’t lend to several borrowers.
Overall, AssetSteam tries to streamline the lending process with its platform. By making it faster, transparent and less time consuming, it opens up the market for even the smallest of SMEs.
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