CredibleFriends, a P2P lending app that lets people lend bitcoin to friends, has raised $100,006 of its $250,000 fundraising goal on BnkToTheFuture, surpassing the $100,000 needed by July 15 to ensure the funds pledged will be deposited. The app allows users to extend credit to friends and…
CredibleFriends, a P2P lending app that lets people lend bitcoin to friends, has raised $100,006 of its $250,000 fundraising goal on BnkToTheFuture, surpassing the $100,000 needed by July 15 to ensure the funds pledged will be deposited. The app allows users to extend credit to friends and earn interest in the process.
“Credible app is a tap and lend solution,” said Zach Doty, founder and CEO of CredibleFriends, in a video on the BnkToTheFuture website. “We’re a social platform that’s actually usable for every day spending.”
“Uber lets anyone play taxi. We let anyone play credit card company,” said Doty. Existing lending platforms are very complex and not usable for day-to-day spending, he noted. “If you’re at a gas station and you’re short on cash, you don’t grab your phone and open up the Lending Club app. Their loans take seven days and they don’t have an app or a credit card.”
The app allows people to use their own money to lend to others. CredibleFriends does not lend people money.
The mission of CredibleFriends is to get virtual currency into everyone’s pocket, Doty said, by making it easy for people to extend credit to those they know and trust.
To use the app to lend bitcoin to friends, the first step is to create an account using a social media or email account. The lender scans the CredibleFriends QR code or uses their bitcoin address to deposit bitcoin into their CredibleFriends account.
Next, they connect their social media accounts or invite friends to email them. The lender creates a contact list of trusted people they wish to lend money to. The user establishes bitcoin funds for their friends to access and invites them to use the bitcoin.
The friends are then free to spend the bitcoin. Borrowers are charged 25% APR interest using the average daily balance method. Sixty percent of the interest and fees goes to the lender. The borrower is charged the interest monthly.
Minimum balances are due monthly. Borrowers who don’t pay on time are charged fees. The minimum monthly payments pay interest for the last statement, plus 1% of principal. Actual repayment times vary depending on the borrower.
The lender recovers their loan when the borrower repays it in full. The lender can withdraw the available bitcoin balance at any time. The borrower can use an associated Visa card, the video noted.
Featured image from Shutterstock.
Last modified: January 10, 2020 2:56 PM UTC