LendLedger – An Alternative Marketplace for Lending Services on the Blockchain

The Blockchain technology does not only focus on cryptocurrency. The blockchain technology can be used in various applications relating to all areas of our lives such as finance, logistics, voting, tax, medicine, state affairs, insurance music and much more. The technology is disrupting centralized businesses and projects by moving them to the decentralized blockchain technology which is based on distributed ledger. The blockchain technology avails trustless, efficient, reliable, transparent transactions across borders and with a higher speed and cheaper cost.

The most disruptive blockchain application is on the financial sector where a lot of financial Technology FinTech projects are created. This is as a result of the poor financial services rendered by traditional institutes. This disruption is being witnessed by the Lending sector of the Financial Industry too. LendLedger is one of such projects that is solving the challenges of the lending service providers with its innovative blockchain project.

Why Traditional Banks do not Lend to Small Businesses

1. Small businesses do not find it easy to get funding from traditional banks because of the processes and procedures involved. Customers must meet the required standard laid by the banks before they are issued loans. This requirement are most times difficult for small businesses to meet.

2. Banks run a credit analysis on the borrower to check his creditworthiness before loans are approved to him. Small business lack credit history and some have debit history thereby making the banks reject the loan request of most small businesses.

3. Banks decline most small businesses loans request because of the amount requested are small figures. Traditional banks will rather give huge amounts to large companies where they will make huge profits. They do not like processing small loan.

4. Banks processed only collateralize loans. The do not give out loans to customers that do not have collateral. They use the collateral submitted by Borrowers to mitigate losses on loans where the borrower is not able to pay back the loan issued to him. Banks fall back on the collateral used to collect the loan.

The LendLedger Solution

1. The LendLedger project has created a decentralized lending platform where a user can borrow funds on a blockchain ecosystem. The platform allows the user to borrow funds based on his data credit which is collected, verified, analyzed and encrypted to secure the information.

2. The LendLedger provides loans to hundreds and thousands of small businesses thereby lowering the entry barriers to Borrowers and Lenders. Borrowers and Lenders data and information are collected by Data Providers. They verify the data and forward it back to the user. The user is in control of his data information and only release it to those he wants to do business with. Browers, Lenders and Credit evaluators are identified and connected on the LendLedger lending marketplace.

3. The LendLedger ensures trust between Borrowers and Lenders because transactions are possible using The LendLedger‘s LedgerCredit. The LedgerCredit is the means were loans disbursement, repayment and commission payment are carried out on the LendLedger’s platform. This records transaction immutably on the blockchain .

4. The LendLedger application is available on web browser and mobile application for Borrower to look up loan offers and apply for the those that suite financial needs.

Conclusion

The LendLedger is giving access to a large number of small businesses and informal borrowers to access funds from willing Lenders fro any part of the world. The LendLedger platform is created on the Stellar blockchain technology. Borrowers, Data Providers and Lenders are connected in an open and secured platform where transactions are reliable, efficient and secured. The platform provides a user friendly platform that is build to give all stakeholder an inclusive lending marketplace.

For more detailed information. Visit the Website and check out the Technical Paper. Join the Telegram for answers to your questions. Follow on Twitter for important updates. Read project announcement on Bitcointalk forumBitcointalk ANN

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