Applying for a loan is as easy as it gets pretty much anywhere. But the criteria on common platforms can do either of two things. It can either be too loose which is dangerous for the lender, or – too tight, which is inconvenient for the borrower. AssetStream tries to find the Goldilocks zone and get the best of both worlds.
What does the lending industry lack?
Like every other industry connected to finance, lending is plagued with lengthy transactions, lack of transparency on the platforms and the overall non-user-friendly attitude of the industry.
To make it a bit clearer, here are the main issues both lenders and borrowers face:
- No control over choosing the borrower
- Collateral funds
- No small loans
Furthermore, the criteria needed to apply on conventional lending platforms make it virtually impossible for small-time lenders and borrowers to participate in the market.
In most cases, the platform will favor large lenders and borrowers with smaller interest rates, over beginners with small deposits, but bigger interest rates.
Fortunately, however, AssetStream aims to create a platform for lenders and borrowers of every calibre. The criteria required to be approved on the platform will be much more user-oriented and open for beginners.
How does AssetStream solve this?
As already mentioned, both lenders and borrowers of all sizes will be welcome on the platform. All they have to do is indicate the required information about their business or themselves.
The information required from individuals include:
- Salary Base
- Credit line
- Personal Contact
- Current Working Duration
- Current Liabilities
- At least 3 months bank statements
- Notice of Assessment
While enterprises will need to disclose their:
- Type of Business
- Registered Capital
- Company Financial Status
- Collateral Asset
All of this information will be safely stored on AssetStream Blockchain platform and used for automatic matches between lenders and borrowers.
By glancing through the matched user’s criteria, both the lender and the borrower will be allowed to either agree or disagree with the match.
Who can use AssetStream?
Dylan used to be the owner of a small vegan cafe in Dallas, which was performing better than expected. Due to the boost in performance, Dylan chose to turn his cafe into a restaurant, but to do so, he needed some additional funds.
After failing to find a partner as well as a direct investor, he was forced to go to the bank.
Dylan had all the criteria to pay off his loan, as the cafe was performing very well. But he got rejected for his loan application because it was too small.
Many small business owners find themselves in a similar situation. The funds required for growth are low, but the banks don’t support it, while microfinancing platforms are too risky.
The whole idea of AssetStream is to solve this issue and make small loans accessible for everyone – individuals and SMEs.
With the criteria required by the platform, both small lenders and borrowers are able to participate in the industry, all the while benefiting from the safety of the Blockchain, as well as saving time with the automatic matching process.
Where will you kickstart your business?
Both lending and borrowing are a serious commitment. Therefore, both parties need to be protected by at least some guarantees.
AssetStream’s Rating Criteria is designed to make the perfect match for the benefit of both parties – for the lenders to find the safest borrower, and for the borrower to find smaller, more manageable lenders.