Fintrux-Most Reliable P2P Lending Eco-System
FintruX is a global p2p lending platform where borrowers, lenders, third party guarantors and specialized service agents co-exist to create a more optimal ecosystem for effortless and secure individual financing relationships. Their decentralized financing platform facilitates the creation and real-time deployment of unique smart contracts on the Ethereum blockchain. This enables instant matching, low fees and immutable loan contracts for a transparent, legally binding and fast financing solution.
Making Unsecure Loans Secure
Their main value proposition resides in their capacity to apply cascading levels of credit enhancements to effectively add security to an unsecured loan. Typically this mechanism is reserved for bulk funding loans of $10 million and higher. However, FintruX now makes this possible on loans of much smaller amounts and this is what sets them apart from the competition. They offer unprecedented security for lenders, while at the same time requiring no collateral from borrowers to qualify for an unsecured loan. These advantages enables FintruX to provide borrowers access to lower interest rates loans.
The FintruX team has over 20 years of experience delivering mission-critical securitization solutions. Their existing system is currently managing several billion dollars for banks and financial institutions.
Credit Scoring with Bloom
The concept of lending on blockchain, naturally opens up the possibility to avoid repayment of the loan since the lender might not have all the necessary details of the borrower to enforce the debt in the borrower’s jurisdiction.
Bloom solves this problem with BloomID and BloomIQ. By leveraging these features of their platform, FintruX can bring enforceability, and borrower credit ratings to their ecosystem.
FintruX will update an individual user’s BloomID with their payback rate — if an user defaults, their rating will be affected. With FintruX’s automated administration platform, Bloom is automatically updated with the results of every loan.
Bloom + FintruX
FintruX is an ambitious project that intends to create an all inclusive global p2p lending ecosystem that is capable of providing financial liquidity to those who need it the most; to small business and startups, and especially aspiring entrepreneurs to get over their cash flow issues.
Bloom will be one of the credit scoring partners on the FintruX network. We hope to provide the Bloom user experience in their initial launch in Q3 2018 and when they go to market in Q4 2018. By leveraging the Bloom protocol, defaulted FintruX loans will be captured in the Bloom network. Reporting these defaults will provide an incentive for the borrowers to repay loans.
Most importantly, Bloom users will be able to tap into a global lending ecosystem facilitated by FintruX and our other lending partners. Together, we are looking forward to unlocking financing liquidity to everyone around the world.
FintruX ICO overview
Cost reduction is one of the most important motivations in securitization. It is often done via credit enhancement. We can apply the same principles to reduce the interest rate required by unsecured loans, making it attractive to both borrowers and lenders. Our goal at FintruX Network is to disrupt the way unsecured loans are being originated and administered.
An unsecured loan is a loan that is not protected or secured by any asset. In this case the lender is taking a lot more risk and would likely charge a higher interest rate. The riskier the loan, the more expensive it will be. We are going to change that. At FintruX Network we facilitate marketplace lending in a true peer-to-peer network. Through credit enhancement, we improve credit worthiness. The lender is reassured that the borrower will honor the obligation via additional collateral, insurance, and a third-party guarantor. Credit enhancement reduces credit/default risk of a debt, thereby increasing the overall credit rating and lowering interest rates simultaneously.
They are solving three major issues for small businesses, especially startups, to borrow from accredited investors:
- By applying credit enhancements, FintruX Network seeks to neutralize the lender’s credit risk and, in the case of a default, provide cascading levels of insurances to cover the loss;
- A unique smart contract is generated and deployed by FintruX Network for each individual borrowing at real time to provide unambiguous, immutable, and censorship resistant records where no arbitration is required;
- In addition to simplifying the loan application process via instant matching, FintruX Network also provides borrowers with post-funding self-serve administration options such as refinance and prepayment.
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