Bloated with costly and superfluous third-parties, time-consuming processes and skyrocketing costs, today’s lending industry needs an overhaul. Fortunately, blockchain’s distributed ledger technology is here to help.
Designed to instill trust with its unbiased and decentralized network of nodes, blockchain replaces costly banks and greatly reduces loan processing time. Instead of paying exorbitant processing fees and waiting up to 60 days for loan approval, individuals and small businesses can now apply and receive approval for a blockchain-based loan in a matter of minutes. In fact, it’s estimated that the burgeoning alternative lending industry will loan to 20.7% of small businesses by 2020.
Blockchain Lending Platform Applications
Blockchain lending platforms speed up loan processing times and reduce growing costs. Without middlemen, blockchain provides lenders with competitive loan offers and secure transactions.
Blockchain-based smart contracts ensure that both loan seekers and lenders agree to fair and feasible terms regarding things like proof-of-funds and payment planning. These real-time contracts validate and record transactions without the use of pricey lawyers and banks, and the decentralized nature of alternative lending lets borrowers access a larger pool of competitive financing offers.
Here are 11 companies at the forefront of blockchain in lending.
Location: Denver, Colorado
How it’s using blockchain in lending: SALT uses blockchain’s flexibility to offer cash loans that leverage digital assets. By leveraging Bitcoin, Ether or even Dogecoin, borrowers can lock into cash loans from 1-36 months with an APR as low as 5.99%.