BitBond Review 2018

/BitBond Review 2018

BitBond Review 2018 2018-06-05T15:53:21+00:00
BitBond Review 2018

BitBond Review

Quick inner navigation:

  1. What is BitBond?
  2. Is BitBond Safe?
  3. How to use BitBond?
  4. What are the loan Interest Rates?
  5. How does loaning on BitBond work?
  6. What are the benefits of using BitBond?

In the financial world, cryptocurrency and the blockchain technology as a whole are still a very novel concept. Both of them have been able to grip the world’s attention and open new possibilities. With these recent technological inventions, the shrewd among us have seen opportunities in the technology and seized them.

One such opportunity is the provision of loan and investment services using cryptocurrency. Backed by blockchain technology, cryptocurrencies can now be used to provide quick loans to people around the world as well as provide an opportunity for people to invest their coins and earn interest from it. BitBond is one such company that has taken up the mantle of providing this service. The question is, is it legitimate, trustworthy and dependable? This review discusses BitBond and what it has to offer.

What is BitBond?

BitBond is a peer to peer online platform where you can invest or borrow bitcoins and fiat currency in the form of loans. It is therefore tailored for investors who seek to earn interest from the bitcoin they lend out and borrowers who are looking for small business loans to kick start or revamp their businesses. The company at the time of writing this review is in its 6th year and has had successful operations. BitBond boasts of over 100,000 borrowers and lenders as well as a total cumulative loan volume of close to 1.5 million dollars. It was founded by Radoslav Albrecht who remains the Chief Executive Officer of the company.

Since BitBond is a peer to peer system, it provides a unique way of financing loans as investors all over the world see a loan request and evaluate whether to finance it or not. The investor gets to study the credit details of the person seeking the request. This information is provided by BitBond and once investors are satisfied, swift financing is offered. This could then be used by small business owners to hire stuff, buy inventory and so on.

  • BitBond allows you to borrow from $1,000 up to $25,000 with a repayment period of 6 weeks to 5 years.
  • The company began its operation on 7th January 2013 and is supported in over 120 countries around the world.

What are the cryptocurrencies supported on BitBond?

BitBond only supports Bitcoins.

How does loaning on BitBond work?

  • The loan process starts by first establishing the credit rating of the borrowers.
  • Borrowers are then given their credit rating from the highest A to the lowest F.
  • Once that is done, the borrowers list what is known as a project in the marketplace where investors get to choose what listings attract
  • There is a set number of days (14) in which the listings need to be fully funded, but in the event, the listing gets all the financing it requires, the auction is closed.
  • Investors can lend as little as 0.01 BTC.
  • Borrowers are allowed only one loan at any given time.
  • When the price of Bitcoin increases during the lifetime of the loan, the number of Bitcoins to be repaid decreases. On the other hand, when the price of Bitcoin falls during the lifetime of the loan, the number of Bitcoins to be repaid

What are the loan Interest Rates?

  • Interest rates accrued on loans are not set in stone. They are dependent on the borrower ratings and the terms of the loan agreed by both parties.
  • BitBond’s interest rates vary from as low as 7.7% to as high as 25%.

What the fees charged by BitBond?

  • BitBond charges a one-time origination fee of 1% to 3% of the total loan amount. This is at per with competing companies.
  • The fees vary with the length of service. A shorter loan repayment period, a smaller origination fee.

How do you know that you are eligible for a loan?

Unlike banks, loans applied in BitBond do not require collateral in exchange. This means that BitBond needs to make very deliberate steps in ensuring that the loans are paid back to the investors and in full. BitBond review your business to determine whether it qualifies for a loan or not. Audited financial statements are not necessary. A filled borrower’s application must be submitted. BitBond then reviews this information coupled with linked business accounts such as eBay and PayPal.

Approval or disapproval depends on:

  • Your credit score.
  • Country of residence.
  • Personal business accounts.
  • Type of employment.
  • Payment history where available.

What are the benefits of using BitBond?

  • BitBond charge low fees due to the fact that they use blockchain, as a backdrop of making payments. Transfer and exchange fees are avoided.
  • Operating a BitBond account does not necessarily require you to have a bank account. This is because Bitbond is a P2P lending platform where borrowers directly meet with the lenders. This stands to benefit people in undeveloped countries where access to bank accounts may be limited.
  • BitBond facilitates receiving of money from investors found all over the world. This increases the probability of quickly finding the crucial money needed for a business.
  • Applying for a loan does not affect your credit score. Moreover, there is no minimum credit score required to apply for a loan.

Is BitBond Safe?

The question of BitBond’s safety and whether or not it is a scam is something that should be scrutinized very keenly, as many websites, especially those providing loaning and lending services, are in fact scams. They represent the company’s activities as legitimate, while they are actually high yield investment programs or Ponzi schemes.

  • Community Trust

I have not come across many cryptocurrency websites that get reviews of more than 3 out of a possible 5 from its users. BitBond ratings are on average 3.5, which is solid in my opinion. This goes to show that the public trusts the company to some extent. Furthermore, the ratings indicate that the company is somewhat trustworthy.

  • Customer Support and Handling Speed

BitBond provides average customer support. After doing some research, we discovered that there are many disgruntled users. Some of the users have claimed that the support team was not able to communicate with them effectively. For example, some have lamented of paying heavy penalties after Bitbond’s collecting partners failed to remit their loan repayments in time. Other customers have also felt neglected by the company after their requests were answered a week from the date of their filings.

In contrast, their handling speeds, especially when it comes to processing the loan requests are quite satisfactory. Loan requests are quickly processed and approved.

 How to use BitBond?

  1. To use BitBond you first need to create an account on its official website at bitbond.com.
  2. When creating your profile, you choose whether you would like to apply for a loan or start investing I.e. being a borrower or a lender.
  3. From there, you need to fill in some personal data such as name, email, enter the password and agree to the terms and conditions of service.
  4. A confirmation link will be sent your email address.
  5. You will be directed to the login page where you will get to enter your email and password and then log in.
  6. You can then proceed to personalize your account. This is a good idea, especially for borrowers as potential investors will be interested in your account as they contemplate on investing in you.
  7. Next, you need to verify your account by clicking on start verification.
  8. You will enter a video session with an identity TM agent who will help you through the next steps.

Lending Bitcoin

  1. In lending Bitcoin, an investor needs to first click on the Bitcoin symbol and send funds to the Bitcoin address shown.
  2. You will have to wait for a short period for the transaction to be confirmed in the Bitcoin network.
  3. Once that is done, you can now click on invest in loans.
  4. You can then filter your search results to obtain the ones you are most interested in.
  5. Finally, it is prudent to check on the loan description to ascertain that what you are investing in is reasonable and not too risky.

Review Summary

BitBond is an online platform whose mission is to aid small businesses to get the much-needed funding to run or sustain their businesses. It achieves this either through fiat currency or by using bitcoin and meets its objectives rather successfully. BitBond has been growing steadily over the six years it has been in operation, which gives a vote of confidence to the company’s future. I am convinced that it a legitimate company and not a scam. However, I am very skeptical about how the business has been modeled. As one online reviewer put it, BitBond is a good idea that has been executed quite poorly.

First, BitBond does not guarantee investors on the full repayment of their loans. In the case of a default, the investor stands to lose a considerable sum of money. Additionally, loan underwriting is poor.

In my opinion, BitBond best serve small businesses seeking loans for their businesses but in return does not properly benefit investors.

Pros

  • Takes a much shorter application period to get loans as compared to banks.
  • You are in total control of your account.
  • Loans are approved very quickly. As fast as 15 minutes.

Cons

  • The complicated application process for beginners.
  • Poor customer service experience.
  • Most loans are not paid in time.

Thanks for reading! Make sure to check our site for more.

Leave A CommentNo Comments on "BitBond Review 2018"