KYB & DD

8lends employs a rigorous borrower verification process to ensure that only financially stable and credible businesses are allowed to list projects on the platform. This process reduces the risk of defaults and enhances investor confidence.

1. Verification Process

Businesses seeking funding undergo a rigorous verification process and 40-points risk assessment of the business to ensure they meet the platform's standards for financial health and credibility. This process includes an evaluation of the company's financial statements, operational history, market position, and collateral value. Only businesses that pass this stringent verification process are allowed to list their projects on 8lends.

2. Due Diligence

• The platform conducts extensive due diligence to verify the accuracy of the information provided by borrowers and to assess their ability to repay loans.

• Example: Detailed checks on a company's sales records, existing debts, and market trends ensure the borrower is capable of meeting repayment obligations.

3. Collateral Assessment

• The value and legitimacy of the proposed collateral are thoroughly assessed to ensure it provides sufficient security for the loan.

• Example: A company offering its inventory as collateral must provide documentation and third-party valuations to verify its worth.

4. Financial Analysis

• A detailed analysis of the borrower's financial statements — including balance sheets, income statements, and cash flow statements — is conducted to evaluate financial stability.

• Example: A logistics company’s financial records are reviewed to assess profitability, liquidity, and debt levels.

5. Operational Review

• Assessment of the borrower’s operational capabilities, market position, and business model to ensure long-term viability.

• Example: A retail company’s business operations, supply chain management, and market competitiveness are evaluated.

6. Market and Industry Analysis

• Examination of market conditions and industry trends to understand the external factors affecting the borrower’s business.

• Example: An agricultural company’s exposure to market volatility and climatic conditions is analyzed to gauge risk.