Loans play a major role in the growth and development of businesses, most especially small businesses who require certain amount of capital in order to expand their business. Over the years, small businesses have been faced with the inability of obtaining loans which as a result is due to the legal and bureaucratic barriers as an impediment to the global flow of capital.
The financial system is not left out also as they have refused to change in line with the innovativeness that evolving technologies has to offer instead they are still stuck in obsolete traditional models. Small businesses are only left with the options of using these mediums which are very expensive channels for acquiring loans.
This options were out of the costs for small businesses because they were very expensive and it took a long process to obtain loans as a result of challenges associated with these mediums
CHALLENGES
Centralized: the options available for obtaining loans by small businesses operated centralized structure, controlled by a single authority. This resulted in lack of equal access to loans by small businesses, many businesses across unbaked areas could not access such loans due to their geographical location.
Expensive: these mediums were attributed with lots of legal and bureaucratic barriers which small businesses have to go through before they loans they require could be granted. Therefore, small businesses had to pay huge amounts of money to acquire loans.
Introducing Ethichub
Ethichub seeks to provide a blockchain based peer to peer platform where small businesses can have access to loans provided by investors around the world, thereby allowing for a decentralized lender to borrower platform for obtaining loans.
Ethichub will provide gloal access for small business to investors providing a wide portfolio of investment opportunities which small businesses can utilize in expanding their businesses.
How will Ethichub achieve this?
Ethichub seeks to create a global financial market which will connect investors to small businesses using the following tools:
Blockchain: Ethichub takes advantage of the decentralized feature of blockchain technology to create a platform for peer to peer transaction between small businesses and investors in a transparent and secured manner.
Smart contracts: the use of smart contracts makes crowd lending possible on the platform as any form of intermediary is eliminated between the small business and investor. Smart contracts allows for a higher level of security and transparency in the platform.
Trust: Ethichub capitalizes on trust which is based on economic credibility on human relations, human based economics and also carries out project risk evaluation on both parties before the issuance of loans.
Solutions
Ethichub will provide solutions to the challenges faced by small businesses in obtaining loans from existing financial institutions, which include:
Low cost charges: the platform through the adoption of blockchain technology provides a peer to peer platform connecting small businesses directly with investors in contrast to the financial institutions attributed with many intermediaries that accounted for the high cost of acquiring loans.
Accessibility: Ethichub will also provide small businesses across unbaked areas with a wide variety of investment opportunities thereby giving equal opportunities to small businesses irrespective of their location.
Transparency: the use of smart contracts and blockchain technology allows for transparency between investors and small businesses on the platform.
Final Thought
Ethichub seeks to provide loans to small business at low cost charges in a decentralized medium using blockchain technology utilized with smart contracts.
Web: https://www.ethichub.com
Telegram groups: ESP - https://t.me/ethichub ENG - https://t.me/ethichubeng
Twitter: https://twitter.com/EthicHub
Facebook: https://www.facebook.com/ethichubcrowdlending/
Youtube:
Medium: https://medium.com/ethichub
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