Collateralization
Overview: Collateralization is a fundamental feature of the 8lends platform, ensuring that loans are backed by real-world assets. This reduces the risk for investors and enhances the security of their investments.
Mechanisms:
Tangible Assets:
Loans are secured with physical assets such as inventory, equipment, real estate, and receivables, providing a stable collateral base.
Example: A manufacturing company offers its machinery as collateral for a loan. The value of the machinery is assessed and verified.
Collateral Valuation:
Maclear conducts to determine the accurate market value of the collateral.
Example: A logistics company’s fleet is appraised by an external valuation firm to ensure it meets the loan amount requirements.
Collateral Management:
The platform manages and monitors the collateral throughout the loan term to ensure it remains sufficient and unencumbered.
Example: Periodic checks on the inventory offered as collateral by a retail company to ensure it maintains its value and is not sold off.
Last updated