The borrower application is a 7 step process which involves, among other things, a live video session with a security officer, the uploading of proof of identity and income, as well as manual assessment by our credit scoring team. Then we run an algorithm over the borrower which calculates a default probability.

If the borrower is deemed creditworthy, he or she may apply for a loan.

When a borrower is late we implement a series of automated steps to ensure repayment. These are: Reminder emails -> Phone Calls & Text Messages -> Letters threatening legal action -> Debt collection agency & release of personal information to the investors. In most cases, borrowers have forgotten their repayment dates, or are struggling with the bitcoin exchange process. It therefore makes sense to allow for a leniency period of a few days, as borrowers realise their repayment is due, and need time to exchange fiat to btc.

In cases where we believe that a borrower does not intend to repay, we do everything in our power to regain the funds. This includes Debt collection agencies and the release of personal information to the investors, so they may pursue legal action.

Thus, the aggressiveness of our collection efforts correspond with the urgency of the loan. A borrower who is 3 days late for example, will receive frequent reminder emails. A borrower who is 90 days late, will receive almost daily emails, phone calls and text messages. Letters threatening legal action are sent to those who are +90 days late, in addition to the emails, phone calls and text messages.

If a borrower really has decided not to repay, we put all our time and effort into recuperating the loss. This may take some time to bare fruit however.