Important Things to Consider to get Started with your P2P Crypto Lending Platform

Cryptocurrency lending platforms emerged during the bearish crypto market in 2018 and since then the market has shown no downturn. A P2P (peer-to-peer) crypto lending platform provides crypto owners with an opportunity to make money by holding cryptocurrencies. These lending platforms are disrupting the conventional lending marketplace and are giving tough competition to the lending process of the banking industry.

[sc_fs_multi_faq headline-0=”h3″ question-0=”Is there any criterion to qualify for P2P crypto loan?” answer-0=”No, there is no qualification criterion. Anyone or everyone with the ability to put up collateral can take a loan on a P2P crypto lending platform.” headline-1=”h2″ question-1=”How can platform owners benefit from crypto lending platforms?” answer-1=”If you are considering capitalizing on this business opportunity, you need to create a software platform and bring borrowers and lenders to your platform. You can earn revenue through transaction fees or commission.” headline-2=”h2″ question-2=”Does P2P lending platform has a guarantor to support their transaction?” answer-2=”It depends on the business model. Some platforms require a guarantor while others do not.” count=”3″ html=”false”]

The factors that resulted in increased popularity of a P2P crypto lending platform include:

• Low interest rate
• A streamlined process of requirement sharing between borrowers and lenders
• No credit check
• Instant, transparent, and secure transactions

P2P lending platforms usually offer flexible interest calculations, which means that the interest can be calculated daily, monthly, quarterly or even yearly. The two parties involved in the lending process include the following:

• Borrowers: P2P crypto lending platform is a very appropriate model as it takes into consideration all forms of the audience whether with a good credit score or with a bad credit history. The borrower can be an individual or an organization in need of money. While developing your P2P crypto lending platform, make sure to ensure all the security measures such as multi-layer security, KYC and AML verification, and more to enable safe transactions.

• Lenders: These are those individuals who use their funds to provide a loan to borrowers. As a P2P crypto lending platform eliminates the need for an intermediary to execute transactions, the entire process becomes accelerated and streamlined. A P2P crypto lending platform functions best for individuals who do not wish to sell off their funds or savings and attempt to create new revenue streams by holding their crypto assets.

The working of a crypto lending platform

Moving further, we will discuss the working of a P2P crypto lending platform. Let us comprehend the loan generation steps one-by-one.

• Investor Onboarding: Firstly, lenders or investors are brought on-board for accepting a loan request. They need to create their profile on the platform by providing the required information. After the required information is acquired, the lender’s details are updated on the crypto lending platform.

• Borrower Onboarding: Borrowers who wish to apply for a loan are also required to create their profiles on the platform by providing the required information. Whenever they require a loan, they place a “Borrow” order on the platform.

• Order matching: As soon as a “Borrow” order is placed by a borrower, the matching engine works to match it with the right lender. All of the lenders’ profiles are scrutinized to find a perfect match according to the terms and conditions.

• Funding: Once the orders are matched, the borrower gets the requested loan amount and the lender starts earning interest on the loan amount lent by him on a daily, monthly, or yearly basis, depending on the business model.

• Repayment: During the repayment period, the borrower repays the loan and gets back the collateral. In case the borrower fails to repay the loan, his collateral value would be sold off in the open market to recover the loss amount.

P2P crypto lending platforms are offering many advantages to platform owners as they offer regular cash inflow in terms of charges and commission and have the ability to reach the global audience.

Summing Up

A P2P crypto lending platform has acquired significant traction because of its added benefits in terms of solid growth and flexible interest criteria. They are equipped with all the necessary features and characteristics to revolutionize the conventional banking system.

If you are considering tapping into the profitable lending marketplace, Antier can help. We provide feature-rich white label P2P lending platform integrated with bank-grade Admin panel to reinvigorate the lending paradigm. Our white label P2P lending platform is underpinned by other market-leading features like refinance, LVR calculation, hot wallet, KYC and AML verification, and more.

Schedule a free demo of our white label P2P lending platform or connect with our subject matter experts to share your needs for a custom lending platform.