Due diligence is the reassurance everyone needs before investing their money into someone else’s credit or trusting a lender. It is essential to turn to services, which require a due diligence check, to avoid being scammed. Especially, with cryptocurrency-based platforms and ICOs, to avoid ending up like most of the people who acted on FOMO.
FOMO stands for fear of missing out, and it can happen to you too. This fear led thousands and millions of people, including my university mates to invest in such scam ICOs like PlexCoin, ToTheMoon, and others. Statistics show that 80% of the ICOs in 2017 was a scam and that these ICOs demonstrated red flags all over their material, but FOMO was intense.
My friends never got to see their Moons, PlexCoins, etc. and these ICOs ceased to exist with their founders along the way, making it impossible to trust honest ICOs and teams without due diligence (which is smart and crucial).
AssetStream due diligence for borrowers, lenders and SMEs
AssetStream is a blockchain-based microfinancing platform that promises to create a friendlier environment for borrowers, lenders, and all blockchain enthusiasts.
AssetStream and CreditOK perform detailed due diligence checks for both individual borrowers and SMEs. The results of said due diligence can be found under Credit Scoring for individuals, and Credit Rating for SMEs. Of course, once these results are released after due diligence, they are updated according to the behaviour of the borrower.
Borrowers also have the opportunity to improve their credit rating by providing additional external information to complete their KYC profile, which will significantly reduce the time needed for the completion of the due diligence process.
In order to ensure the security of borrowers, AssetStream makes every potential lender fill out detailed due diligence forms and documentation as well. Thus the process of entering the platform and investing or borrowing through AssetStream is always tied to a due diligence profile. It ensures the trust of both sides of potential contracts so that everyone is reassured that they are performing financial operations with a real, responsible person on the other side of the Internet.
How does due diligence work with AssetStream?
In order for the platform to gather enough information to complete the due diligence profile of each client, no matter a borrower or a lender, users need to fill in several personal information fields when they first register.
The more fields you manage to fill in, the better for your KYC profile. This means that you can skip through the larger part of personal information details when registering. However, this could possibly lower your Credit Score or Rating.
The absolutely necessary information is your personal identification and proof of address, as they ensure that you are a real person, or business, and not a scammer looking to take advantage of other people’s investments.
After you have provided the necessary information, the due diligence process can start. Keep in mind that if you manage to fill in some of the additional requirements fields, you’re likely to receive your Credit Score or Rating faster.
Of course, you can always improve your Credit Rating later on. To illustrate this better, imagine a baker, who has just gone through the due diligence check, and is approved for a loan, but hasn’t filled out all additional fields, so his score is a bit lower than he expected. One of the main ways for him to improve his Credit Score is to repay his first loan on time. If he does that according to the contract terms and conditions, his Credit Score will be higher the next time he applies for credit.
Тhe due diligence process AssetStream has is both very rigid and ensures the security of the platform’s users, and also flexible, to allow people to repair their Credit Score or Rating after several successfully repaid loans.
Gather your documents and head to AssetStream!
Don’t hesitate to get started with your due diligence on AssetStream. It’s fast, easy and most importantly, it guarantees your potential lenders that you are a responsible borrower and vice versa.