For many newer businesses and companies in a startup phase, one of the most significant hurdles to overcome is getting access to capital to help fuel growth. While there is always the option to seek business financing using traditional lenders such as banks, credit unions, and the SBA, countless applicants don’t qualify for unsecured loans for a variety of reasons including poor credit scores or having little or no collateral to back the loan.
P2P Business Lending Platform
FintruX aims to solve this common business predicament by offering a Peer-to-Peer lending platform, bringing lenders and borrowers together using Smart Contracts. To protect all parties involved in the use of the platform, FintruX plans to engage with partners to provide a range of services including fraud protection, identity verification, and credit scoring. The ultimate goal of the project is to set up a “trustless financing” option for both investors and borrowers who use the platform.
Investors or lenders can set their terms when conducting business with a borrower. The Smart contracts that utilize the ETH blockchain are vital to enforcing these agreements and keeping an accurate ledger of transactions for all concerned parties.
It is worth noting that the FintruX platform itself does not make loans or assume any financial responsibility if a loan contract facilitated at their site enters into default, so as with any investment it is always a best practice to understand the potential risks associated with this type of financial activity.
If you would like to learn more about the FintruX project, be sure to check out their Whitepaper for pertinent details.