Crowdvouching Alternative to Peer-2-Peer Lending Announces ICO
Suretly, a crowdvouching platform that offers an alternative to P2P lending, has announced its upcoming crowdsale. The crowdvouching model followed by Suretly works in conjunction with microfinancing organizations, where investors can vouch for a borrower by offering assurance to repay a portion of the loan amount in case of default. In return for their guarantee, they will receive compensation based on the borrower’s credit rating.
This model differs from conventional P2P lending, which requires investors to co-sign for a certain portion of the loan. In this model, a borrower is forced to get backers to co-sign for the entire amount before they can avail the funds. Suretly mainly targets short-term loans and the platform has been described as the ‘Tinder for Microloans’.