Earn interest on your BTC by making small credit history building loans

[BitLendingClub]

I recently announced the opening of BitLendingClub Beta at http://www.bitlendingclub.com and there have been a number of borrowers that are attempting to build up a credit history. Most of the loan requested are fairly small, less than 1 BTC, so if you want to earn interest on your BTC and help people build a credit history then head on over to our website and check out some of the loan listings: http://bitlendingclub.com/loan

Some loans worth taking a look at:

0.6 BTC - 66% funded - 0.2 BTC needed to fully fund: http://bitlendingclub.com/loan/browse/lid/27
0.7 BTC - 40% funded - 0.45 BTC needed to fully fund: http://bitlendingclub.com/loan/browse/lid/16
1 BTC - 40% funded -  0.6 BTC needed to fully fund: http://bitlendingclub.com/loan/browse/lid/14

Thanks,
Kiril Gantchev
CEO and Co-Founder of BitLendingClub

Website: http://www.bitlendingclub.com
Facebook: https://www.facebook.com/bitlendingclub
Twitter: https://twitter.com/BitLendingClub
LinkedIn: http://www.linkedin.com/company/bitlendingclub

[1714822844]

1714822844

[1714822844]

1714822844

[🏰 TradeFortress 🏰]

Are we going to go through this reputation loan phase again?

[BitLendingClub]

Are we going to go through this reputation loan phase again?

We have to start somewhere ...

[davos]

This will all end in tears. 


What sort of system is in place for collection on loans in default? Is there, or are their plans for, a system for asset backed loans?

[greyhawk]

Are we going to go through this reputation loan phase again?

We have to start somewhere ...

Not at the bottom of the barrel we don't.

[BitLendingClub]

This will all end in tears.  


What sort of system is in place for collection on loans in default? Is there, or are their plans for, a system for asset backed loans?

Thanks for the question, it's a serious issue we're dealing with! However, please do note that we're in beta, so we don't have a solution for collecting on loans in default yet, i.e. the loans are unsecured. However, we're exploring solutions to allow us to collect on defaults or to partner with organizations that can easily collect on the borrowers (there are a number of those that already exist in the BTC community). We do know that our major competitor also has unsecured loans and people have funded over 15K worth of BTC loans through their system, so we know that unsecured lending occurs on a large scale. The major difference is that we have some skin in the game: we don't collect the loan fee (of 1%) until the payments start rolling in, so if a borrower defaults then we lose revenue.  

But again, I want to emphasize that we know that a collection solution is needed and we will roll one out as soon as possible. Furthermore, we're also looking to make strategic partnerships with other institutions which will provide us with more borrowers whose loans can be secured through the partnering institution. All in due time of course, but it's one of those huge things on our radar.

[Damnsammit]

This will all end in tears.  


What sort of system is in place for collection on loans in default? Is there, or are their plans for, a system for asset backed loans?

Thanks for the question, it's a serious issue we're dealing with! However, please do note that we're in beta, so we don't have a solution for collecting on loans in default yet, i.e. the loans are unsecured. However, we're exploring solutions to allow us to collect on defaults or to partner with organizations that can easily collect on the borrowers (there are a number of those that already exist in the BTC community). We do know that our major competitor also has unsecured loans and people have funded over 15K worth of BTC loans through their system, so we know that unsecured lending occurs on a large scale. The major difference is that we have some skin in the game: we don't collect the loan fee (of 1%) until the payments start rolling in, so if a borrower defaults then we lose revenue.  

But again, I want to emphasize that we know that a collection solution is needed and we will roll one out as soon as possible. Furthermore, we're also looking to make strategic partnerships with other institutions which will provide us with more borrowers whose loans can be secured through the partnering institution. All in due time of course, but it's one of those huge things on our radar.

Ouch.  Prepare for a volley of dumb joeys!

[BitLendingClub]

This will all end in tears.  


What sort of system is in place for collection on loans in default? Is there, or are their plans for, a system for asset backed loans?

Thanks for the question, it's a serious issue we're dealing with! However, please do note that we're in beta, so we don't have a solution for collecting on loans in default yet, i.e. the loans are unsecured. However, we're exploring solutions to allow us to collect on defaults or to partner with organizations that can easily collect on the borrowers (there are a number of those that already exist in the BTC community). We do know that our major competitor also has unsecured loans and people have funded over 15K worth of BTC loans through their system, so we know that unsecured lending occurs on a large scale. The major difference is that we have some skin in the game: we don't collect the loan fee (of 1%) until the payments start rolling in, so if a borrower defaults then we lose revenue.  

But again, I want to emphasize that we know that a collection solution is needed and we will roll one out as soon as possible. Furthermore, we're also looking to make strategic partnerships with other institutions which will provide us with more borrowers whose loans can be secured through the partnering institution. All in due time of course, but it's one of those huge things on our radar.

Ouch.  Prepare for a volley of dumb joeys!

We take great care to outline the risks and yes: there is substantial risk and we don't recommend that people go investing without really understanding that risk. There are ways to mitigate that risk:

• Invest in many loans with small increments instead of few loans with large sums. (i.e. don't invest more than, say, .3 BTC per loan).
• When making a loan offer, then make the interest rate sufficiently high to cover potential defaults on other loans.
• Consider the borrowers credit history when making a loan and adjust the interest rate accordingly.
• Communicate with the borrower to get clarifications on the loan and to reduce fraudulent loans.
• Consider the verification steps the borrowers have completed: ID, Address, Social verifications (Google/Facebook) and soon to come LinkedIn social verification and proof of income.

The list goes on, but I think that there are few good rules of thumb there and they largely apply in this forum as well.

[Hfleer]

Looks nice, seems similar to BTCJam.  This idea is getting more frequent.

[Tomatocage]

This is a scammers wet dream

[ericwt]

OP, Credit building loans?

So you actually subscribe to one or more of the three credit reporting agencies?

Somehow I do not think Equifax is going to take a report on a Bitcoin loan.

[Hfleer]

OP, Credit building loans?

So you actually subscribe to one or more of the three credit reporting agencies?

Somehow I do not think Equifax is going to take a report on a Bitcoin loan.

I think you build credit on his website, obviously he's not talking about real world credit rating.