Collateral
Loans on the 8lends platform are secured with real-world assets, providing stable and reliable collateral.
Mechanism:
Tangible Assets:
Loans are backed by physical assets, ensuring that there is a tangible value securing the investment.
Example: A manufacturing company secures a $200,000 loan with its machinery valued at $250,000. This collateral reduces the risk for investors by providing a fallback in case of default.
Collateral Valuation:
Valuations are conducted by Maclear to determine the accurate market value of the collateral, ensuring it meets the loan requirements.
Example: A logistics company offers its fleet of trucks as collateral. Maclear evaluates and appraises the fleet to ensure it adequately covers the loan amount.
Collateral Management:
The platform manages and monitors the collateral throughout the loan term to ensure it remains sufficient and unencumbered.
Example: Periodic checks on a retail company’s inventory offered as collateral ensure that it maintains its value and is not sold off.
Example: A manufacturing company seeking a $100,000 loan offers its machinery and equipment as collateral. The value of this collateral is assessed and verified during the project listing process. If the company defaults on its loan, the collateral can be seized and liquidated to repay the investors, minimizing their financial risk.
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