This is the approved revision of this page, as well as being the most recent.
- Country: Germany
- Headquarter: Berlin
- Type: Financial Services
- Round: Seed
- Cost: $0.27 million
- Date: 13-Aug-2014
- Investors: Point Nine Capital, Nelson Holzner
BitBond offers small businesses the opportunity to access cheap loans, while lenders receive favorable interest rates. Because Bitband lending works exclusively with bitcoins, neither the borrower nor the lender needs a Bank account, making Bitbond particularly attractive to borrowers with poor access to the banking system.
Since its launch in 2013, Bitband has issued over 1,400 bitcoin-based credits and boasts a broad user base consisting of residents from over 120 countries.
A Bitcoin loan is a contract between one borrower and one or more lenders to borrow a certain amount of Bitcoins. Bitcoin loans can have a duration between 6 weeks and 5 years. The repayment is either a bullet repayment which resembles a zero coupon bond or a monthly repayment which resembles an amortizing loan.
Borrowers receive a rating before they can publish Bitcoin loan requests. The rating requires an identity verification and is based on a financial assessment. In order to get funded, a loan request is published to the Bitbond marketplace where lenders can place bids during an auction. The loan request remains on the marketplace for up to 14 days. The information presented to lenders is anonymized. Both, borrowers and lenders have a payment schedule displayed in their personal section of the site after an auction was finished successfully.
About obtaining a license BaFin, founder and CEO of BitBond Radoslav Albrecht said that BitBond can work independently from banks. This gives the company a significant advantage over other financial technology startups that are forced to buy a license and are therefore tied to the regional level where they can run their business. Albrecht said: "Our own license helps us to fulfill our mission, which is to make financing and investing globally accessible. We are proud to be one of the first regulated financial service providers in the entire blockchain space. This creates legal security for investors on our platform and shows that Germany is a great place for innovative and globally active financial service providers."
Bitband offers loans of up to $10,000 to small businesses and entrepreneurs around the world. A significant portion of borrowers consist of online sellers on platforms like Amazon and eBay, for which Bit band offers special loans. For example, these are Amazon Bitband credits that provide "fast and affordable working capital" for a growing business. Bitbond evaluates sellers ' e-Commerce creditworthiness by allowing them to connect their electronic account (on eBay, Amazon, or Debitoor, for example) to their custom platform to allow the credit assessment team to view borrower's income data and reviews from its customers. The better the feedback and income, the lower the interest rate for the borrower.
Bitcoin affiliate program
Bitbond runs a bitcoin affiliate program that is accessible to everyone who signs up with the site. The program rewards affiliates with a commission of up to 50% of Bitbond's loan origination fee. Bitbond pays 20% of the fee it makes to the affiliate who referred the borrower. The affiliate who refers a lender earns 30% commission of the origination fee that is attributable to the affiliate's invitee.