Unsecured loans Get Highly Secured with FintruX

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With the help of FintruX and blockchain technology, getting an unsecured loan will be easy, fast and affordable.

Fintrux built an ecosystem of rated agencies, decentralized technology and revolutionary credit enhancements.

Unsecured loans are normally have a higher interest rates because the lender is taking a lot more risk since an unsecured loan is a loan that is not protected or secured by any asset.

The riskier the loan, the more expensive it will be - This is what FintruX aims to change.

The current ways to obtain an unsecured loan for business are still have rooms for improvement in the areas of transparency, risk & rate reduction such as local banks, private lenders, and marketplace lenders such as peer to peer and direct platform lenders. Banks and credit unions offer unsecured loans that are difficult to get especially for the business startups and small business owners. It can also take months to apply and get approved.

Peer-to peer lending is also called marketplace lending. These platform lenders use other investors to fund their loans. This means that the money for the business loan might be originating from dozens, or even hundreds of individual investors all over the world. They usually offer more flexible approval and repayment terms than either bank or direct online lenders, but their interest rates are generally a bit higher.

However, something is still missing, the current P2P platforms are not true P2P because they are using intermediates such as trust accounts and others, just like direct lenders; they lack transparency and they do not provide enough protection for lenders investments.

Thanks to FintruX Network where an unsecured loan can get highly secured through utilizing Ethereum blockchain technology, making it decentralized, transparent and highly secured.

FintruX can deliver an experience to address all of these at the same time. It facilitates a marketplace lending in a true peer-to-peer network. Through credit enhancement, they improve creditworthiness. The lender is reassured that the borrower will honor the obligation via additional collateral, insurance, and a third-party guarantor. Credit enhancement reduces credit/default risk of a debt, thereby increasing the overall credit rating and lowering interest rates simultaneously.

How credit enhancements make unsecured loan highly secured?

1. Over-collateralization acting as additional security; and if it fails to cover all losses arising from the same borrower,

2. Third-party guarantors take care of the overflow losses from the above for the selected loans; and if it still fails,

3. Cross-collateralization pool provides additional insurance; and if it still fails,

4. Five (5)% of all FTX Tokens has been reserved to cover any losses incurred by lenders.

FintruX solutions for small businesses & startups

1. By applying credit enhancements, Fintrux Network seeks to neutralize the lenders credit risk and in case of default, provide cascading levels of insurances to cover the loss;

2. A unique smart contract is generated and deployed by FintruX Network for each individual borrowing at real time to provide unambiguous,

immutable, and censorship resistant records where no arbitration is required;

3. In addition to simplifying the loan application process via instant matching, FintruX Network also provides borrowers with post-funding selfserve administration options such as refinance and prepayment and access to third party rated agencies.

FintruX platform will also be available to partners such as fraud and identity service agents,credit scoring and decision agents, wallets, exchanges, banks, asset managers, insurance companies and technology companies; to offer new investment and borrower products and develop new tools for use on our platform.

These ecosystem partners can transact directly with FintruX marketplace or leverage its automated administration tools to build financing portfolios.

How FintruX generate revenue?

FintruX generate revenue from charging participants transaction fees in FTX Token.

Lenders can charge their desired fees to their borrowers. Lenders can also

reward borrowers with FTX Tokens if paid on time.

The capital to invest comes directly from a wide range of lenders, including retail investors, high-net-worth individuals and family offices, banks and finance companies, insurance companies, hedge funds, foundations, pension plans, university endowments, and through a variety of channels.

Connect with FintruX!

To know more about Fintrux Network, visit here: FintruX website

& Whitepaper

Click here to know more about FintruX ICO : Token Sale

Source : Whitepaper

Authored by:

Bitcointalk profile: @imdada

Disclaimer: I am not a financial advisor. It is not intended to be investment advice. I do research and reference the sources that I use within my writing. This is my personal views and opinions and is for information purposes only.