Lendo grows the market for loan companies

Image for post
Image for post

If you’re a UK-based, FCA-registered loan company there is one thing you can’t do: you can’t make loans to people resident outside the UK. The UK is still a large market for loans, but imagine what your business would look like if you could lend to people in Asia and other parts of the world. Lendo offers registered loan companies the power to access a global market and expand in a way that is currently unimaginable.

The financial regulations and laws of the jurisdiction where a loan company is registered have traditionally limited expansion beyond the jurisdiction’s borders. There is a good reason for that: if a loan company registered in London lends to a borrower in Hong Kong, and the borrower defaults on the loan, then the company has no access to a legal process to recover the debt. However, they do have a process to fall back on if the borrower lives in the UK.

Lendo’s fintech platform removes this barrier to a global market. Lendo also opens up a new market sector for loan companies, i.e. cryptocurrency owners who want to spend their crypto assets, but don’t want to sell them. This is a completely new consumer sector, and while it might still be niche, it’s growing.

Here are the most important points about how conventional lenders who join Lendo’s network can grow their market:

· Loan companies using Lendo will have ‘first mover advantage’ and be able to gain extra market share by attracting new borrowers with crypto assets.

· Lenders will be able to accept Bitcoin, Ethereum and Litecoin as collateral as well as Lendo tokens.

· Lenders can provide fiat loans at up to 60% LTV against the crypto collateral.

· Lending decisions will made easier as they are based on quickly realisable asset value rather than conventional credit scoring.

· Lenders can repossess crypto assets quickly and easily in the event of loan default through automated smart contract systems, which pass possession from borrower to lender (via the Lendo escrow/exchange system) without needing time consuming and expensive conventional legal processes.

· Lenders can now have a global reach as the crypto assets are held in Lendo’s international escrow/exchange system — meaning that the borrowers country of residence is no longer of any significance.

If you’re a UK-based, FCA-registered loan company, wouldn’t you like to expand your business? Contact Lendo for more information about becoming a member of the lending network — you can find out more about Lendo here.

Written by

A blockchain platform that will take banking to another level https://www.lendo.sg

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store