We have very high interest rates on loans. These rates don't allow us to be competitive with "turkish tomatoes" – I heard today the words of the commissioner for the entrepreneurs protection in Russia. And this is true, in our country, business lending is an urgent and painful topic.*
What's the problem?
Banks are afraid to lend to businesses because of the risks that the company may not stay afloat and close. Therefore, loans are not issued or are issued at an inadequate interest rate.
In Europe, any entrepreneur can receive preferential loans for business development, where CME is one of the most stable and actively developing. If we compare in figures: in Russia, the average weighted rate on loans for business is 17.75%, while in the whole for the EU this figure is about 3.6%. There are countries that are "lucky" even less than us, Brazil (44%), Argentina (28%) and the absolute champion in this category - Zimbabwe - 589%. But even in countries with "tasty" interest rates, the tedious procedure of applying for and approving loans remains a challenge. And the main problem is the lack of legal possibility of financing abroad.
Many useful innovations are not embodied in life, only because the idea was no one believed and not funded. For the same reason, thousands of small and medium-sized enterprises are bankrupt every year in the world. With the advent and popularization of blockchain technology , many interesting and worthy solutions to this problem have appeared. One of these solutions is The Deal Coin project, which proposes to unite creditors and borrowers in one ecosystem, providing them with mutually beneficial cooperation conditions.
Through the eyes of developers. What is The Deal Coin?
The project CEO Michael Morrison in his interview said that The Deal Coin will be the first regulated blockchain company, which with the help of the latest technologies will not only reduce the cost of fiat currencies loans for business regardless of their location, but also improve profitability for investors. And this person knows what he is talking about, having rich experience of work with SME for more than 25 years and being the owner of such a business with an annual income of more than $ 75 million.
The seriousness of the project developers purpose is evidenced by the fact that the platform is going to work in accordance with the existing regulatory framework for each jurisdiction.
Over the past 3 years, the lending market has been studied and contacts have been established with private and institutional investors from around the world who are interested in greater profitability and safety of their funds. With such huge support, developers are confident that The Deal Coin will change the financial market forever. The launch of the platform is scheduled for the first quarter of 2019.
What will the loan process look like?
- The borrower fills out an application for a loan.
- DAPP platform verifies all the information.
- Application is approved, the loan request is sent to the platform where it becomes available to investors.
- Concerned investors contact the borrower and specify all the conditions for the loan.
- If both parties agree, a smart contract is signed and the borrower receives the loan. Smart contact is the investor's insurance.
- Fund is allocated to Deal Coin and is converted to the desired currency.
- Upon expiration of the term specified in the smart contract , the borrower repays the loan, the funds with interest are returned to the investor.
ICO will last until June 10 or upon reaching the hardcap of 50 million dollars. If you want to participate - go to this link. The token and coin value is equal to $ 0.10 US. Payment method - ether, bitcoin, ripple and fiat currencies.