BLOCKCHAIN-BASED peer-to-peer lender Bitbond has launched a new product designed to offer more flexibility for entrepreneurs.
The small- and medium-sized enterprise finance provider connects individual and institutional investors with small business owners in need of working capital loans.
Its new offering, Bitbond Flex, allows borrowers to ‘top up’ their existing loan, giving them additional funds quickly, and enables them to decrease their monthly repayment amount by extending the loan duration of their current loan.
Bitbond Flex generated over $200,000 (£155,868) in loan volume in its first day, the company said.
“Bitbond Flex gives entrepreneurs from around the world the ability to adapt to a quickly changing business environment,” said Bitbond chief executive and founder Radoslav Albrecht.
“Now businesses can use our platform to top up and stretch their existing loan. As a result, businesses can access extra capital with the click of a button through our platform.”
Read more: Bitbond secures £4.2m to fund SME loans
Bitbond uses blockchain technology for payment processing, which it says makes the platform – and its users – independent of banks. The firm, which is regulated in Germany, has funded more than 3,000 loans worth over $12m since launch in 2013.
Lenders funding the loans can receive returns of up to 13 per cent and can either build their portfolio manually or use the autoinvest tool.
Borrowers can access loans of up to $25,000 starting at one per cent interest a month.