Credit history is a big factor when a customer is looking to take a traditional loan. There are some instances when your credit history is not good or even non-existent. Even if this is the case, you shouldn’t write off your chances of getting funding because innovative lending institutions are emerging constantly, and many of them can extend credit without a credit history.
Microfinancing and nonbanking institutions
Microfinancing is an emerging credit tool, which is specifically designed for customers who lack any credit history or have failed payments in the past, and this has affected their history in a negative way. The way microcredit is structured allows customers to slowly create a track record of their successfully repaid loans.
In the case of AssetStream, credit is extended to borrowers who have an existing business infrastructure. Borrowers choose AssetStream because it offers an easy online application and flexible rates. They will undergo KYC, Due Diligence, credit review process including but not limited to the submitted documentary requirements. Aside from a validated existing business infrastructure, a borrower must be of good moral character and is aware of his/her financial obligations.
Non-banking institutions are generally more flexible in their requirements towards customers seeking funding.SME borrowers must present the necessary documentation and endorsement from the community. If matched, a borrower will receive a LOAN CERTIFICATE which is then presented to the local agency. Once a borrower reached his softcap, he can present the LOAN CERTIFICATE and withdraw the first part of the loan in the local currency.
Turn to more innovative lenders in order to get funding
With the numerous technological advances the world witnesses on a daily basis, finances are bound to develop as well. With the introduction of the blockchain system, companies like AssetStream are helping SMEs find financing in flexible and reasonable interest rates.
What AssetStream offers is an innovative use of the main characteristics of blockchain – openness and security. When providing micro-financing through its platform, AssetStream employs blockchain to make sure that all contracts are visible to both parties.
Build your credit history on AssetStream
The way AssetStream employs blockchain is by basing its whole financial platform on the AST token. It allows them to keep careful track of the payments each client is making, which is then the foundation of their brand new credit history. By starting out with micro-financing, AssetStream ensures that their clients are in fact capable of paying back their loans, despite their bad credit history.
One of the best features of this blockchain based platform is its peer-to-peer mobile interface. This provides customers with an easy, on the go platform. The combination of easy access and reliable financing makes rebuilding credit history a breeze. Peer-to-peer financing means that people who want to borrow are matched up with people who want to lend, and everything happens online, without the need to go to branches or sign piles of documentation.
In order to further motivate clients to improve their credit history, the AssetStream platform also features ratings and badges system. This way, when borrowers are performing well and repaying their loans on time, they will receive a badge in order to showcase their good streak to other lenders.
You can still be successful, even without a credit history, with the help of blockchain
Having a bad credit history is not the end of the world, and you can still be successful and get funding with the help of innovative micro-financing tools and blockchain-based lenders. As technology progresses, so does the world of financing, which means it is now possible to mend or even build your credit history from scratch with the aid of platforms like AssetStream.