Bitbond Review 2024

Bitbond Financing Types

The platform sets borrowers up with unsecured, peer-to-peer small business loans in Bitcoin – a type of financing that doesn’t require the borrower to provide collateral. It’s usually used by companies that wish to expand, purchase equipment, or fund a specific project. The absence of collateral can, however, translate into higher interest rates.

Unsecured loans brokered by Bitbond cannot be taken out in fiat currencies, as this unique peer-to-peer lending marketplace insists that borrowers and investors use Bitcoin. Transactions are fast and secure, you don’t need a high credit score, and there are no bank fees involved.

Bitbond’s partners offer loans ranging from $1,000 to $25,000 in value. The repayment period is six months to three years with monthly interest rates. The technology employed by Bitbond guarantees that all payments are charged automatically in accordance with the agreed timetable.

Bitbond isn’t a direct lender and therefore doesn’t outline specific requirements for getting your loans approved. There are some general requirements that you should be aware of:

• Personal credit score of 560 or above
• Stable income for the past 12 months
• Valid passport or ID
• No reported bankruptcies

The application process for borrowers is quick and easy, and usually takes no more than 15 minutes to complete.

Follow these steps to apply:

• Select the “borrow” option
• Choose the amount of money you want to borrow
• Type in your personal information including name, gender, and citizenship
• Include details about your business

What Information Do I Need to Apply?

In order to get a clear picture of your financial situation, Bitbond also asks for read-only access to both your business and personal bank accounts. Information about your company – such as your annual revenue and the number of years you’ve been in business – will likely affect the loan amount, but not whether the application is approved.

We conducted a thorough examination of all other application requirements and found that the platform will also ask for the following:

• Access to your personal credit score
• Access to your business accounts on PayPal, Amazon, eBay, Shopify, or Etsy
• Details about the loan including how much you want to borrow
• Payment history of Bitcoin loans, if it exists
• Reason for the loan
• Verification of your account

An evaluation of your accounts on selling platforms like Amazon and eBay will only be conducted if you’re an online seller. Bitbond may also examine your online presence and the activity on your social media accounts.

You can include a short description of up to 1,000 words about why you need a loan. It usually takes 24 hours for the Bitcoin lending platform to approve your application, which is then matched with potential investors.

Bitbond Features

Just like other platforms that connect customers to cryptocurrency lenders, Bitbond helps you avoid fees that come with standard bank accounts. Moreover, your chances of finding the right loan increase exponentially since you aren’t relying on a single bank or online lender, but can choose from hundreds or even thousands of investors from around the world.

After you’re cleared for a loan, your requirements are listed on the platform. It generally takes between one to five days to find the investors and fund the loan. But investors have a range of options, and after reviewing applicants, they can choose to bankroll the entire loan or only part of it. The minimum investment is 0.01BTC, which is why finding investors to fund the entire loan isn’t always easy.

The loan requirements are listed on the site for two weeks, during which time the borrower needs to secure 60% of the requested loan amount. If the applicant fails to secure the 60%, all investments are returned to the lender.

Loan Amount and APR Details

We've already noted that loan amounts on this platform range from $1,000 to $25,000, while repayment terms can be anywhere from six months to three years. The interest rate is calculated based on the term length.

Bitbond also has an origination fee. For a loan with a six-month repayment term, the origination fee is 0.5%. This is a one-time fee. Before applying for a loan, be sure to calculate the origination fee, because Bitbond takes the amount directly from your loan. The APR ranges from 7.7% to 25%.

• Loan amount: $1,000 to $25,000
• Interest rate: starts at 1% per month
• APR: 7.7% to 25%
• Origination fee: 0.5%
• No prepayment penalty
• Loan term: six months to three years

Eligible and Ineligible Businesses

While the marketplace offers an ideal solution for small business owners who want to borrow up to $25,000, Bitbond’s unsecured loans expand the scope of potential borrowers.

Moreover, Bitbond doesn’t have an annual revenue threshold, nor does it insist on high credit scores.

Businesses with online shops turn to Bitbond because it’s among the few peer-to-peer lenders with a proven track record of providing fast and reliable loans for online sellers.  Here’s a list of things the lenders' loans can be used for:

• Buying inventory
• Leasing equipment
• Hiring staff
• Operational costs (moving, renovation)
• Investments

Bitbond Repayment Terms

Bitbond small business loans come with monthly rates that are calculated based on your loan term. The longer the repayment period, the higher the interest rate. Aside from the aforementioned one-time origination fee, Bitbond helps you avoid transfer and exchange fees by using Bitcoin’s blockchain as its payment network.

Due to the risk of severe fluctuations in the value of Bitcoin, loan amounts are calculated in US dollars, but all payments are made using the digital currency.

A borrower pays monthly rates to the investor or investors. The platform displays your rates and the timetable for your payments. The whole process is automated, meaning that Bitbond deducts funds from your account and makes payments to lenders’ accounts. Just make sure you have enough BTC in your account for each payment.

If you’re late making payments, Bitbond charges you additional fees. But if you make your payments earlier than scheduled, there are no rewards or deductions in the amount you owe.

Bottom Line

Bitbond is a global marketplace, meaning that it matches investors from all over the world to potential borrowers. The platform eliminates transfer and exchange fees by using Bitcoin’s blockchain.

This isn’t a direct lender, and as such Bitbond requirements don’t include a minimum credit score or oblige applicants to provide audited financial statements.

Bitbond’s only major downside is the auction process, which requires investors to fund 60% of the loan within two weeks. The lending marketplace is also not the right option for those who want more traditional or larger loans.