This week we are delighted to announce a €5 million debt commitment from Obotritia Capital to fund loans on the platform. With this investment we have introduced two meaningful improvements to our borrower experience:
Let's look at these two points in more detail:
As existing users will already know, the loan amount had previously been capped at €10,000. This was to ensure that a large percentage of loans got fully funded in a matter of days.
With the €5 million commitment from Obotritia, we can now ensure that even larger loans get funded quickly on our platform. That is why we have increased the maximum loan amount to $25.000/€25.000/£20.000. This applies to all borrowers, regardless of whether they are new to the platform or not, or where they may be located.
By increasing the maximum loan amount on Bitbond, we will be able to bring global SME financing to even more small businesses from around the world.
Due to this significant investment from Obotritia, we can now offer instant financing to prime European borrowers. This means that selected loans for up to 12 months, will no longer be listed on the Bitbond listings page, but will instead be funded immediately. The loan amount is then transferred to the borrowers Bitbond account, from where the bitcoin can be withdrawn easily through our Bit4Coin integration.
These are the criteria your loan must fulfil in order to be eligible for instant funding:
With these factors in mind, prime European borrowers can expect the application and funding process to take less than 30 minutes. We believe that this represents an unprecedented level of convenience, and welcome any feedback from you to help us improve the process further.
Small business owners looking for financing should sign up for a free account and complete the borrower application (watch the walkthrough here). This typically takes less than 10 minutes and we will then get back to you within 24 hours with your rating. With this information at hand, you are then free to publish your loan. If you're having problems with this step, please read our detailed guide on the matter or reach out to our customer service.
After checking your eligibility, your loan may get approved for instant financing. If this is the case you should receive the funds into your Bitbond account within a matter of minutes.
The final step is then to withdraw your small business loan using our Bit4Coin straight into your bank account.
Thanks for reading and see you on the platform :)
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PRESS RELEASE: Under embargo until Wednesday May 10th 2017, 10:00 am CET
Global SME marketplace lender Bitbond today announced that it received a commitment from Obotritia Capital to fund loans worth €5 million through its platform. Additionally, Obotritia invested an undisclosed amount of equity to acquire a stake in Bitbond.
With the debt commitment, SME loans from European prime borrowers will be funded instantaneously on Bitbond. This will reduce the time it takes for business owners to apply and receive a loan to 30 minutes.
The equity investment from Potsdam based Obitritia will be used by Bitbond for further product development and marketing. Bitbond plans to continue growing its user base with online sellers and small businesses who need working capital financing.
Over 1,700 loans worth €1.4 million were originated through Bitbond since its launch in 2013. 90,000 users from 120 countries registered with the service to date.
Founder & CEO of Bitbond Radoslav Albrecht said: “The debt commitment by Obotritia brings Bitbond to the next level in our efforts to provide universal SME financing. The next step is to work with partners. Such partners could be online marketplaces who want to add value to their platforms by giving their merchants access to instant cash through Bitbond.”
In October 2016 Bitbond received their own regulatory licence by German financial services supervisor BaFin. Bitbond uses the bitcoin blockchain for payment processing and is one of the few fully regulated and licenced blockchain based financial services providers.
Individual and institutional investors finance the loans of small business owners via Bitbond and by that get access to attractive interest rates. Most of the platform’s borrowers are online sellers who run their shops on e-commerce marketplaces like eBay, Amazon or Etsy.
Bitbond conducts a machine learning based credit check which uses the revenue data of merchants. The loans are mostly used for inventory financing. In September 2016 Bitbond launched its automated scoring mechanism at Finovate New York.
Bitbond is the first global marketplace lending platform for SMEs. Individual and institutional investors fund working capital loans of small business owners to earn above average fixed-income returns. Bitbond conducts a credit check on all borrowers based on data from their business accounts.
By using the bitcoin blockchain for payment processing Bitbond and its users are independent of banks. Bitbond is the first German BaFin regulated financial services provider that uses blockchain technology.
Before founding Bitbond, Radoslav Albrecht worked for Deutsche Bank London in sales and trading and Roland Berger Strategy Consultants.
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