15 reasons to invest in Suretly ICO
Jun 29, 2017 Posted / 5096 Views
Money lending platforms have suffered many setbacks over the years making the task of getting loans for people tedious. Money lending market is dominated by traditional banks and financial institutions who will not back the customers who have a below-average credit history, and to get loans from these institutions, process of applying for the loans is so cumbersome, then also there is a chance for rejection. Many companies have tried to find out a more user-friendly approach to getting loans. For a long time, the P2P or the Peer to Peer lending was so popular and has been able to destroy many of the problems faced by the customers of the traditional bank while taking loans. However, it also has its own disadvantages.
Suretly is a new solution which can compensate all the P2P lending has been launched which is based on a unique concept known as Crowdvouching. This solution is going to revolutionalise the whole concept of money lending with all its new features and user-friendly ways.
Suretly is a platform derived from a unique concept known as crowd vouching. Crowdvouching is the procedure of guaranteeing a loan payment by vouching money contributions from a large number of investors or co-signers. It has many advantages over the P2P lending platforms. In this, the vouchers or the investors don't actually lend any money to the borrowers, but they will act as a guarantee to repay the loan amount of the borrower in the case of borrower's default. All vouchers collectively determine whether a particular loan amount is to be credited or not. Liability of a particular loan is divided among a large number of investors. Each approval guarantees at most $10 from the total loan amount. Since the vouching amount range is limited from $2 to $10, the borrower has to find out many investors to complete their whole loan amount.
The main difference between the Peer-to-Peer (P2P) and crowd vouching lending platforms is that in the crowd vouching platform, no investor or co-signer is giving their money to the borrowers as loans. They are not buying securities either. The process is the co-signers or investors act as a guaranteer to provide a part of the borrower's debt in the case of a default. According to the credit ranking of a borrower, the respective investors will be gaining a profit.
Just like the Peer to Peer (P2P) lending, different investors give their approval only a portion of the loan amount of the borrower, not for the whole amount. Each borrower should get a large number of investors or co-signers in order for getting the loan. The loan can be guaranteed only that way in the platform. Currently, Suretly provides short-term loans, usually for a period of 30 days. This involves high profit for the investors, but have a higher risk rate. But this is compensated as there are a large number of investors.
Investors have a chance of quickly getting their returns from the investment. In the platform, the commission of the investors will be given as soon as the borrower gets their loan amount, which is a good feature which will attract the investors to join in.
The important advantage of the Suretly platform is that the rates will be minimum for the borrowers. By minimizing risk rates of the investments, there is no need for the investors to introduce higher interest rates from the borrowers to cover any big expenses or defaults. The borrowers have to cover the costs of the compensation for the investors. If a borrower is having a higher credit rating, this amount becomes really insignificant for him.
Always, the borrower's personal data is kept confidential, it is not disclosed to the investors. The investors have only got the data of the borrowers suitable to determine their profit or their risk ratio from the lending. Even in the case of a defaulting borrower, the personal data is not enclosed with the investors. So there is no such situation in the platform where an investor starts the procedures for independent recovery of their money when the loan is not repaid by the borrowers.
Many people are there who have an imperfect credit history who are termed to be sub-prime borrowers. Such borrowers will be given special consideration in the platform. According to the statistics from CSFI, almost half of the population in America have a FICO score less than 600 points. This implies these people are not able to get any loans from traditional banks. That's where the significance of Suretly comes. In this platform, each borrower has a card with their minimum personal information disclosed to the investors for their decision making. Lots of investors vouch for the borrower with small amounts ranging from $2 to $10 to complete the borrower's loan amount.
Even in groups of people where they don't know each other, The collective responsibility can increase or affect the default rates very much. The platform had been functioning in Eastern Europe for 4 months. From the test data collected from the experience, it is found that the default rate in the Suretly platform is much lower than in any other credit platforms.
Crowd-vouching is a concept which can be used for any type of loans or credits for any uses. But what the platform Suretly currently focusses is small and short term loans which include the payday loans. This allows the investors to get considerably large rewards for their higher risk level in the investment. The reason why the micro-financing is combined with crowd vouching is that they are one of the biggest among the loan markets currently available. According to CSFI statistics, almost $40 million is paid as the interests for short term loans annually by the U.S residents alone.
Suretly always charges a 3% commission from every loan they approve. It does not matter if the main borrower repaid the loan or not. The crowd vouching platform has got big scaling potential. The only thing needed for its further progress is a good number of new investors, users, and potential partners.
In this platform, crowd vouching is used for providing any types of loans or credits for any uses. But currently, the team is focusing on providing small loans with the help of micro- financing companies. In the user interface of Suretly, Tinder's mechanisms are applied. ie Different cards with details such as photo, city, age, and sex of borrowers are presented to the investors. Along with the basic details, details such as the reward or the remuneration, whole probability of the loan repayment, etc are given. If an investor thinks that the reward or the risk ratio is comfortable, he will swipe the borrower's card to the right, guaranteeing a small amount to that borrower. If he is not comfortable, he moves cards to his left and studies the details of next borrower. An insurance of loan limited to $10 USD is granted for every voucher approval.
Suretly is releasing their token SUR and its ICO is planned to happen from July 11 to August 11 with a goal of achieving $1.5 million to $10 million U.S.D. The main investor of the initial round is a Singapore based company â€œSURcoin pte.ltdâ€ which have options of buying almost 15% of the whole tokens and they have the chance to start the ICO. Then SURcoin pte.ltd will issue a crowd sale where all willing users can buy these tokens in exchange for different cryptocurrencies like BTC, ETH, LTC, Waves, etc. The initial exchange rate of SUR token will be 0.1 ETH or the equivalent of that amount in any of the other cryptocurrencies.
Once an amount equivalent to $10 million USD is raised or after the expiry date of the ICO, the creation of new SUR Tokens will be ended permanently. If the crowd funding was successful. then an additional 10% of tokens will be issued for giving rewards to the current and future employees. The tokens produced in this way cannot be sold by anyone for a 12 month period. A 2% bounty will also be issued for those people who helped in the marketing of the token or Suretly platform. After the ICO, no new tokens will be created. All funds raised from the ICO will be exchanged for Suretly Inc.'s 15% shares.
There will be two types of tokens available in the platforms Ethereum and Waves. The user can select which token they want. SUR Tokens will be added to all currency exchanges not later than 5 days after the ICO is finished.
The business model of Suretly has been successfully tested in Eastern Europe and in the coming months, the platform will be extended to the markets of Kazakhstan. They have introduced an ICO for the SUR Tokens for the crowd vouching platform for an amount of $1.5 - $10 million USD. After the ICO, they will launch their platforms in the U.S markets this year itself. After being successful in the U.S market, they will extend the platform to different countries in Latin America, Asia, and Europe.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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