Best website to give out loans? Btcjam or ?

[BitLendingClub]

Hi,
I'm the CEO of BitLendingClub, we're the second largest lending marketplace in the Bitcoin ecosystem. Our platform handles about 35% of the entire lending volume in the Bitcoin ecosystem. We're part of Boost VC's accelerator program (Adam Draper runs it), we have a dedicated team of engineers and support that address customer requests quickly. Our default rate is lower than BTCJam's: we're currently at about 7.2% vs Jam's 10% (they're quoting that number).

There are a number of features which make BitLendingClub a lot better than BTCJam:

• We only take our fee from the repayments, so we don't make money from defaults.
• The lenders set the interest rate by bidding to invest in the loan. The bids with lowest interest rates get to fund the loan.
• Our interface is significantly more user friendly.
• We don't censor people and we allow extensive discussions in the comment sections and in our forum: http://forum.bitlendingclub.com

Please feel free to visit us: https://bitlendingclub.com

Best Regards,
Kiril Gantchev
CEO of BitLendingClub
Twitter: @kgantchev

Connect with us:
Twitter: @BitLendingClub
Facebook: https://www.facebook.com/bitlendingclub
Google+: https://plus.google.com/+BitLendingClub

What measure you have in place to go after scammer and deadbeat?

We can't go after defaults for a variety of reasons:

• It's geographically impossible, since we operate in over 70 countries (and counting).
• Collecting on defaults is extremely expensive, again, because we're in 70 different countries.
• The regulatory compliance necessary to begin collection in each country is too complicated (we can't afford to get the necessary licenses yet).
• Collection is extremely time consuming, so it takes a long time to recover even a portion of the money.

Ultimately, what we've focused on is prevention, rather than collection. Our efforts have paid off quite well too, you can take a look at our statistics page for more details: https://bitlendingclub.com/stats

We released new underwriting rules in the beginning of March and it's already had an amazing impact: we've brought down the default rate by over 50% (from 16.97% to 7.9%)!


It's quite reasonable to suggest that 2 months is not sufficient to determine the default rate, but please note that we count late loans as default. So 100% of the loans reach maturity within 30 days: the average loan term is 30 days and the maximum payment frequency is 30 days.

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[Bitdonator]

I use BTCjam for a year, and it work for me very well...
I have great return on my investment, and no one scam me (so far)

[masterzino]

i signed up on BTCjam not long ago but was disappointed when i found out they didn't have too many people asking for a loan (only 100). So options are limited, especially if you'd like to diversify. I'm going to check out Bitlendingclub next.

[cesmak]

i signed up on BTCjam not long ago but was disappointed when i found out they didn't have too many people asking for a loan (only 100). So options are limited, especially if you'd like to diversify. I'm going to check out Bitlendingclub next.

BLC has near 130 loans, and Btcpop near 30, all the platforms are young, but growing, it's better to register on all the sites, this to see cross paltforms borrowers asking loans to see how much is the total exposure to better understand if it is the case to invest in someone or not.....

[AtheistAKASaneBrain]

I lost 5 BTC in BTCJam back in 2013...the support didn't really give a f*ck abou it...they don't care much if someone will scam you...So i would avoid the lending websites...mostly the users are paying back until they don't...so it is kind of ponzi schemers there

Its a game of numbers. They are not a ponzi, they are venture backed Sil Valley IT company trying to do something innovative that is expanding the btc ecosystem.
Sheesh whats with the haters here...

You have to realize the risks. When 100pple, fund with 1$ some1 from vietnam and they surprisingly disappear no1 is going to go after them probably. Same would be true for some Latin America nations...
Lost 5BTC? Their default rate is ~4%, did you bet on 1 loan only?
If VC firms invested like this they would all be broke.


Two main ideas:

Lend to pple in countries that have working infrastructure or with many recommendations
Lend very small amounts to many loans.

Well, their duty should be that no one gets way with the scam, just like no one usually gets away with scamming fiat. We need to give security to people, and guaranteeing their loans will get paid back, othewise they will not bother with BTC and keep offering fiat loans.

[mrhelpful]

I use BTCjam for a year, and it work for me very well...
I have great return on my investment, and no one scam me (so far)

most of the people are claiming that its easier to default a loan there, and have no repercussions of doing this again.

thats not a good sign to any investor. If the majority have been dealing with this its usually not a good sign, despite you being lucky.

[techgeek]

i signed up on BTCjam not long ago but was disappointed when i found out they didn't have too many people asking for a loan (only 100). So options are limited, especially if you'd like to diversify. I'm going to check out Bitlendingclub next.

Its better to just build rep here, or request a feasbile amount and paying back the loans.

Most of those sites have no punishments for scams. Like wanting 100 btc for a "xyz" project.

[Borisz]

I use BTCjam for a year, and it work for me very well...
I have great return on my investment, and no one scam me (so far)

You are lucky! I got into it (don't even know when, over a year ago) and I was scammed on the first occasion. Bye-bye future investments.

Most of those sites have no punishments for scams. Like wanting 100 btc for a "xyz" project.

Exactly. The reason banks give loans is because they can be sure that you pay back. With bitcoin and no payback enforcement, I take a risk every time I would give a loan. I'd rather give a loan to a respected member of a forum or make an investment in a project that actually has some potential.

[Amph]

why the argument is stuck on btcjam only, there alternatives, plenty of them, like bitbond, bitlendingclub, bkiva.org ecc...

i doubt they are all scammers

[cesmak]

why the argument is stuck on btcjam only, there alternatives, plenty of them, like bitbond, bitlendingclub, bkiva.org ecc...

i doubt they are all scammers

yes, and as i said before, if you want to be an investor, it's better to register in more platoforms, to search for borrowers info and werify cross-infos from all the site to better understand every borrower situation, because, the same borrower ofthen is registered on more than one platform, and with active parallel loans, so understanding the total expoure in debts of one borrower is important to decide to give him more money or not.

[Borisz]

why the argument is stuck on btcjam only, there alternatives, plenty of them, like bitbond, bitlendingclub, bkiva.org ecc...

i doubt they are all scammers

Sorry, I'm not trying to judge the site. BTCjam seems pretty legit and they do nice business. It's the users who can be scamming without control and enforcement of paying back.

Although, thanks for naming a few other sites, I'm looking into them as I'm writing this.

[arallmuus]

why the argument is stuck on btcjam only, there alternatives, plenty of them, like bitbond, bitlendingclub, bkiva.org ecc...

i doubt they are all scammers

Btcjam is leading this industry with the most loan being provided and thus it is not the platform that are the scammers but rather individual in this case. It is easy to fake a verification data in every lending website, if you search on google you can see alot of ID that are free to grab, combine it with a good editting skill then you will get yourself a fake ID.

Whats left is building trust, most "top" scammers are building trust by loaning a small amount and make their way to top tier, it will be then easier for them to loan a bigger amount and therefore attempted to scam at the sum of over 10 BTC

Sorry, I'm not trying to judge the site. BTCjam seems pretty legit and they do nice business. It's the users who can be scamming without control and enforcement of paying back.

Indeed right, the sole fault is in the user and not the platform

[cesmak]

It is easy to fake a verification data in every lending website, if you search on google you can see alot of ID that are free to grab, combine it with a good editting skill then you will get yourself a fake ID.

I don't know btcjam, as i'm not registered there, (is one of the thing i have to do in the next days....) but on btcpop and bitlendigclub, when they verify the borrowres identity, thei ask for a photo with the document id near your face.... I think that this is much more difficult to fake....

But also on this two sites, defaulted borrowers are present.....

[Amph]

It is easy to fake a verification data in every lending website, if you search on google you can see alot of ID that are free to grab, combine it with a good editting skill then you will get yourself a fake ID.

I don't know btcjam, as i'm not registered there, (is one of the thing i have to do in the next days....) but on btcpop and bitlendigclub, when they verify the borrowres identity, thei ask for a photo with the document id near your face.... I think that this is much more difficult to fake....

But also on this two sites, defaulted borrowers are present.....

they should start to add video verification, and not only photo, something like this can't be faked ever

anyway my problem is that i can't find someone that ask for a small loan, they all ask for 0.5+

[cesmak]

It is easy to fake a verification data in every lending website, if you search on google you can see alot of ID that are free to grab, combine it with a good editting skill then you will get yourself a fake ID.

I don't know btcjam, as i'm not registered there, (is one of the thing i have to do in the next days....) but on btcpop and bitlendigclub, when they verify the borrowres identity, thei ask for a photo with the document id near your face.... I think that this is much more difficult to fake....

But also on this two sites, defaulted borrowers are present.....

they should start to add video verification, and not only photo, something like this can't be faked ever

anyway my problem is that i can't find someone that ask for a small loan, they all ask for 0.5+

where ? On Btcpop and BitlendingClub, you can invest only a portion of the total ammount of the loan and partecipate with other investor to finance the loan....

For example i don't put more than 10% of the total loan ammount on a single investment... and max 0.1 btc if the loan it's big big big.... i have 20 / 30 loans financed contemporary to minimize the default ammount using only smal fractions of btc, a little more work to choice the loans but worth it....

[arallmuus]

It is easy to fake a verification data in every lending website, if you search on google you can see alot of ID that are free to grab, combine it with a good editting skill then you will get yourself a fake ID.

I don't know btcjam, as i'm not registered there, (is one of the thing i have to do in the next days....) but on btcpop and bitlendigclub, when they verify the borrowres identity, thei ask for a photo with the document id near your face.... I think that this is much more difficult to fake....

But also on this two sites, defaulted borrowers are present.....

btcjam got the same verification as well . Indeed it is difficult but it is not impossible, nowadays it is easy to fake such things especially if you have some skill in editting or another thing is to submit a blurry identification though it has a low chance to be accepted but it is not impossible to do so

anyway my problem is that i can't find someone that ask for a small loan, they all ask for 0.5+

AFAIK you can provide a minimum of 1 satoshi loan in btcjam. The main point about this lending platform is that multiple people could work together to provide a loan to someone. Therefore the risk for it is split among the lender as well as the interest for the loan.
This enable you to split up your "investment" to several loan and minimize your risk therefore if someone defaulted the loan, you are not suffering from providing 100 % of it.

[Amph]

It is easy to fake a verification data in every lending website, if you search on google you can see alot of ID that are free to grab, combine it with a good editting skill then you will get yourself a fake ID.

I don't know btcjam, as i'm not registered there, (is one of the thing i have to do in the next days....) but on btcpop and bitlendigclub, when they verify the borrowres identity, thei ask for a photo with the document id near your face.... I think that this is much more difficult to fake....

But also on this two sites, defaulted borrowers are present.....

they should start to add video verification, and not only photo, something like this can't be faked ever

anyway my problem is that i can't find someone that ask for a small loan, they all ask for 0.5+

where ? On Btcpop and BitlendingClub, you can invest only a portion of the total ammount of the loan and partecipate with other investor to finance the loan....

For example i don't put more than 10% of the total loan ammount on a single investment... and max 0.1 btc if the loan it's big big big.... i have 20 / 30 loans financed contemporary to minimize the default ammount using only smal fractions of btc, a little more work to choice the loans but worth it....

ah that's good, didn't know that it work in that way, i might give it a shot then

still this https://bitcointalk.org/index.php?topic=128157.msg11532839#msg11532839 (last post) is not reassuring

[RappelzReborn]

I saw btcjam but i assume there must be more.

WHich website is best and most secure and which one do you guys use?

I want to enter one of them but suely i wont enter if loads of newbies post its great

I want to hear some real voices + reasons of the choose

It's probably BTCjam without any other competitive on the field because this website make sure of security [ ID Verifications , Bank Accounts Verifications , Paypal ] and a lot more of informations which makes it really hard to scam people and pretty good . also there is a RATING system to know if the guy you are loaning already gave back what he loaned etc ... pretty good system .
Or you can simply give loans here on bitcointalk but you have probably a high risk of getting scammed if you don't deal with highly trusted members with some "green color"

[Borisz]

AFAIK you can provide a minimum of 1 satoshi loan in btcjam. The main point about this lending platform is that multiple people could work together to provide a loan to someone. Therefore the risk for it is split among the lender as well as the interest for the loan.
This enable you to split up your "investment" to several loan and minimize your risk therefore if someone defaulted the loan, you are not suffering from providing 100 % of it.

While it is true that I can split up my investment among multiple loans, my ultimate goal is to make profit that is a % on top of what I have given to someone. In case, say 3 out of 10 do not repay my loan and the remaining 7 do, in the best case scenario I will have the same amount of coins than what I began with. Hence, what is the point of investing? Had I left my coins in my wallet, I would be at the same point without the risk of losing.

This risk is unfortunately in every investment business, however in this case it is more expressed. I can only see that my money will be used to "buy more hardware for mining" or similar, but I am often not given additional details and expected profit. Some borrowers do, which indicates they are more serious, whereas others give only vague description of what they do with the money.

[pereira4]

It is easy to fake a verification data in every lending website, if you search on google you can see alot of ID that are free to grab, combine it with a good editting skill then you will get yourself a fake ID.

I don't know btcjam, as i'm not registered there, (is one of the thing i have to do in the next days....) but on btcpop and bitlendigclub, when they verify the borrowres identity, thei ask for a photo with the document id near your face.... I think that this is much more difficult to fake....

But also on this two sites, defaulted borrowers are present.....

they should start to add video verification, and not only photo, something like this can't be faked ever

anyway my problem is that i can't find someone that ask for a small loan, they all ask for 0.5+

I agree, a video would be ideal.
Don't you have 0.5+? You've been here for a while. If they give it back + interest, whats the problem? I would do it, if I could trust the system, but I don't. I know that in the deep web they sell stolen IDs and whatnot, so I cant fully risk it.
So yeah in this case, I could probably risk 0.1, but not 0.5+.