Bitbond More Frequently Asked Questions

How are the interest rates set on Bitbond?

The interest rates are set according to the borrower's creditworthiness and the term of the loan. The better the creditworthiness, the lower the interest rates. This method is called risk based loan pricing. The rates range approximately from 10% to 35% on a per year basis.

 

What if a borrower doesn't make his or her payments?

If borrowers are late on their payments Bitbond reminds them frequently to meet their payment obligations. The reminders are conducted via various communication channels including email, phone, SMS and letters. If one or more payments are overdue for more than 90 days, Bitbond passes the handling of the loan to an international debt collection agency. The debt collection agency can report the borrower to a local credit bureau and bring the case to court.

 

How high is the return that can I expect on Bitbond?

The expected return on your fixed income investments varies depending on the type of portfolio an individual investor has. In a well diversified portfolio with over 100 active loans the average expected return after bad debt is 13% p.a.

 

How high are the fees on Bitbond?

The fees for investors on Bitbond are 0%. Since Bitbond is a bank independent platform it can save the costs that other platforms have to pay to their repective banking partners.

 

Why is bitcoin used for payment transactions?

Bitbond is the first global marketplace lender for small business loans. To make cross-border lending economically feasible there needs to be a way to send payments around the world fast and at low cost. Bitcoin offers exactly that. If you have never used bitcoin before don't worry. We will show you exactly how to use it and how easy it is.

 

Which currency are the loans denominated in?

Loans can be denominated in US Dollars, in Euros or in Bitcoin.