What is Suretly (SUR) Crypto Beginner’s Guide
Suretly is a crowdvouching platform that connects users with lenders on a decentralized, blockchain powered platform. They offer short-term lending products and allow platform users to sell surety services. Users can also recommend borrowers to lenders across the world.
The platform focuses on borrowers who have poor credit history, no credit history, or are otherwise not creditworthy. The platform also allows investors to make money and profits by investing a small amount of money into crowdvouching.
People who have difficulty receiving loans from traditional lenders can pay vouchers to essentially vouch for their creditworthiness with a lender. Investors can, for instance, diversify a $100 investment by vouching for 10 different borrowers. Vouchers receive a small fee from borrowers and receive a profit if the borrower pays off the loan.
Investors guarantee loans. They essentially speed up the process of borrowers receiving loans from lenders and guarantee that the loan and its fees can be collected in case of a default.
The goal is that each loan will be vouched for by multiple investors and the total amount they vouch be equivalent to the total amount of the loan. Investors can make $10 for each loan they vouch for. If a borrower defaults on a loan, investors must pay the amount they vouched for to the lender.
How Suretly Works
Investors can make money almost immediately after guaranteeing a loan. Borrowers will have an easier time obtaining a loan because their loan is backed by investors who are vouching for them. If the borrower defaults, the lender collects the money from the investors. This allows lenders to have more surety that the loan will be paid off.
Overall, the platform benefits all users. Loans can be approved far quicker. The fees for the borrower are also far less than in traditional systems. The platform also encourages lenders to extend credit and capital to borrowers who may otherwise be unable to obtain funding.
Investors likewise can easily profit from the platform and can make up to 12% on their investments.
Borrowers are able to submit applications to lenders, and lenders are able to assess their creditworthiness and sends their decision back to Suretly. Suretly than allows the borrow to choose whether their crowdvouching request is public or private. If it is set to private, only users approved by the borrower can see their request. The borrower will receive a sharable link to send to friends and family to request that they vouch for the borrower.
Investors who vouch for a borrower can set their terms and fees. The amount they vouch is held in escrow. If the borrower is able to obtain enough investors and their vouches cover the loan balance, Suretly contacts the lender. The lender disburses the loan amount, and the investors are paid their fee immediately.
If the Borrower pays off the loan, the investors receive the amount they vouched back. If the borrower defaults, the vouchers money is paid directly to the lender. The Borrower, upon default, can choose to pay back the vouchers.