Investment Protection
Overview: Investment protection is a cornerstone of the 8lends platform, designed to safeguard investors' capital and ensure their confidence in participating in crowdlending activities. The platform employs several mechanisms to protect investments, including the use of real-world collateral, a comprehensive insurance protocol, and rigorous borrower verification processes.
The collateral holder is: Maclear AG.
Mechanisms:
Real-World Collateral:
Loans on 8lends are secured with tangible assets such as inventory, stock commodities, and invoices. This collateral provides a stable foundation for loans and minimizes the risk of total loss in case of borrower default.
Example: A logistics company seeking a $100,000 loan offers its fleet of trucks as collateral. If the company defaults, the trucks can be sold to recoup the investment.
Rigorous Borrower Verification:
Borrowers undergo a thorough verification process to assess their financial health and credibility. This process includes evaluating financial statements, credit history, operational viability, and collateral value.
Example: A retail company is thoroughly vetted before being approved to list its project, ensuring it meets the platform's standards for financial stability.
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