Bitbond is a peer-to-peer lending marketplace for small businesses and online sellers that uses blockchain technology. The platform has facilitated thousands of loans in recent years by connecting borrowers with investors worldwide, and Bitbond reviews from customers are overwhelmingly positive. But how good is this service, really? Let’s find out together.
APR range 7.7% to 25%
- Fast and secure transactions
- No bank account required
- Easy to use
- Excellent customer support
- No credit minimum
- Automatic payments
- No collateral
- Short auction period for large loans
- BTC price fluctuations
Bitbond is a Berlin-based peer-to-peer online lending marketplace that matches investors with small business owners from all around the world. Launched in 2013, Bitbond quickly established a reputable operation involving more than 3,500 small business owners and around 1,800 investors. Bitbond is an excellent platform for online sellers and potential investors looking to increase their profits.
According to the company’s founder, the focus has always been on building a bridge between investors and businesses globally. In order to guarantee fast and secure payments, the founders of Bitbond developed a unique blockchain platform that now services a large community of Bitcoin users.
Online reviews describe Bitbond as the best lending platform for online sellers who make between $50,000 and $1.5 million per year. Customers also praise the platform’s interesting approach, which involves a network of global investors who review applications and decide whether they wish to fund your business.
How Bitbond Compares to Other Business Lenders
7.7% to 25%
11% to 31%
Bitbond Financing Types
While writing our review of Bitbond, we found that 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. However, if you’re planning to apply for Bitcoin P2P lending services via Bitbond, here’s a list of general requirements:
- Personal credit score of 560 or above
- Stable income for the past 12 months
- Valid passport or ID
- No reported bankruptcies
Bitbond Application Process
The application process for borrowers is quick and easy, and according to countless Bitbond reviews 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.
During our Bitbond lending review, 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.
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 Bitbond peer-to-peer Bitcoin lending 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
Our Bitbond loaning review has 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%, a figure backed up by Bitbond reviews.
- 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 Bitbond loans can be used for:
- Buying inventory
- Leasing equipment
- Hiring staff
- Operational costs (moving, renovation)
Our Bitbond small business loans review can be a useful guide to using the platform’s services. You can also turn to a series of articles on the site that can help answer some of your questions. If you require additional assistance, get in touch with the site’s customer support team. Bitbond prides itself on fast, reliable, and polite support agents who can be reached by telephone (+49 30 5683 8191) or via email at [email protected].
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 Bitbond 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.
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 Bitbond lending marketplace is also not the right option for those who want more traditional or larger loans.
Is Bitbond legit?
Bitbond is a Berlin-based peer-to-peer online marketplace that’s been in business since 2013. The platform connects small businesses looking to borrow funds with investors from all around the world. Bitbond uses blockchain technology to ensure fast and secure transactions with lower-than-average fees.
How does Bitbond work?
Bitbond is a Bitcoin lending platform. If you’re a borrower, you need to create an account on the platform, which only takes a few minutes. After submitting the required information, it will take around 24 hours for Bitbond to approve your application. Investors from around the world will then review your profile and decide whether they wish to finance part of your loan or the entire amount.
How can I contact Bitbond customer service?
If you require any form of assistance with Bitbond’s services, there are two ways to reach the company’s support agents. You can call on +49 30 5683 8191 or send an email to [email protected].
Does Bitbond check your credit score?
Bitbond reviews your credit score. However, loans do not require a credit minimum, and applying for the platform’s services will not affect your credit.