It can be difficult to get loans in Bitcoin, as it’s completely anonymous, and the lender has no way of knowing if you will repay the loan or not. However, there is a great demand for small business loans nowadays.
It can be hard, but we’ll show you 3 ways to get small business loans in Bitcoin now!
Where to Get Small Business Loans?
Bellow we present three solutions to the question: Where to Get a Business Loan?
Bitcointalk is a very close-knit community. The chances are little if you are new to the website. So, you may need to reach some trust level in this forum before asking for small business loans. The people will deny your loans due to not having any sort of reputation.
That’s where collateral comes in- you need to offer some type of item or guarantee to ensure that you will return the loan; it’s an incentive, because you won’t want to lose the collateral.
Collateral can be anything from physical items to coins, and even Bitcointalk accounts (your mileage may vary by account rank, however)!
Once you log or sign in, click on Marketplace, and then Lending. You will be directed to a large page full of loan requests and how-to guides and the like. This is how every single page in the forum works. To make a request, click on “New Topic“, and put in your BTC address, collateral, and why you want the loan (In this case, you are trying to get a business line of credit in bitcoin).
We higly recommend you read the top four darker blue posts, as they will help you understand the more complicated rules with this, but they are very simple.
The usual template for an application is the following (write it into your requesting post):
Username BTC Needed Reason Repayment amount(You can also do interest, but the repayment amount is much easier to read) Repayment Date BTC Address Collateral (What you give the loaner to give you an incentive to repay the loan; if you default on it, the loaner keeps the collateral)
You can also request for your loan at a lending service; they’re often much more organized and have clearer terms; most of the members running the services are very trusted, and they won’t do anything bad. Always check trust before doing a loan, and you should be fine.
If you are a trusted member, you may be able to ask for a no-collateral loan, but they are very rare and people will put negative trust on your account if they think you are not worthy. The golden rule in the forum is “No collateral, no loan”, so keep that in mind.
It’s an oddity to see small business loans requests on there, so people may be reluctant. Provide ownership information if possible, that way you’ll get your business line of credit faster. While people usually don’t request obtaining a business loan on the forum, you should be fine as long as you follow our tips.
ATTENTION- NOT AVAILABLE TO THE UNITED STATES.
BTCJam is an interesting website, where people will choose to loan you bitcoin (P2P Loans) if they feel it’s for a cause they support. They use a grading system to rate the borrower’s reliability. Oddly, it goes from A to E (Why not F? I thought this was a grading system :\), but we won’t judge.
BTCJam gives investors an interest rate based on the borrower’s reliability- if you wanted to invest 1 BTC in a loan that has a Rank E profile, you’d choose how much you want to invest, and when to recive payments.
You recieve profit through interest, and the borrower recieves bitcoin to fund the project she/he is doing, so each side gets something. We’ll offer some tips to you as well, since BTCJam has a lot of scammers these days-
– Be as transparent as you can possibly be. If you want a loan for a bitcoin miner, don’t say it’s for an art project. Be truthful and honest, and you will be rewarded the loan in time. In this case, it’s obtaining a business loan, so say that in your description.
– Build reputation. if someone invests .5 BTC to your loan, give them some on their loan too- it doesn’t have to be .5 BTC, but it can be 0.01 or as much as 1. Show trustworthiness and friendship, and you will be rewarded with a timely small business loan.
– Provide proof of purchase. If you’re going to buy a bitcoin miner, show them the reciept or invoice with the important details blurred. It’ll reassure them that their Bitcoin is going to a good place, and you’ll gain reputation so that you’ll get a fast small business loan next time too.
Bitbond also offers P2P loans, but is tailored directly for small business loans. Not only is it tailored for them, it ONLY offers loans to people trying obtaining a business loan with bitcoin.
Not only is it a fast way of getting a fast small business loan, it also offers the same grading scale as BTCJam and is available to the United States!
The timetable for interest is longer, however, so you can get loans faster. Also, note that there seems to be a lot more funding for this website than BTCJam- this could mean getting a faster small business loan.
It looks very reliable, and also allows connecting accounts and webpages so that people can verify you are legit. Overall, this looks like a reputable site for getting small business loans!
Now You Know How to Get a Business Line of Credit!
There are plenty of options for getting a small business loan, but we’ve hopefully helped narrow it down for you. Obtaining small business loans in bitcoin is difficult, and so is just obtaining a business loan by itself, but we hope you’ve been helped by this guide!