Sweetbridge Asset Finance
We're reinventing asset-backed lending and designing a system that will make it possible for everyone to get the money they need when they need it. One loan that can be backed by multiple assets with terms you set and can change at any time.
How it will work:
Sweetbridge has designed an asset loan protocol that allows members to take out a loan without an application. Rather than your credit history determining your trustworthiness, we can determine your creditworthiness based on the value of your asset itself.
Step 1: Lock your assets in your wallet
An asset is said to be locked because when you place it in your wallet it is wrapped in a smart contract on the blockchain. You still have ownership of it, but you can't sell it until you have paid off enough of the loan to unlock the asset.
When you have assets locked in your wallet, you will be given a maximum amount you are able to take out. You can take the maximum available amount as a loan or less. It's entirely up to you.
Step 2: Set the terms of your loanThe interest rates, amount you can take out, and loan payment terms that are available to you depend on what assets you have locked in your wallet, the percentage of the available line of credit you are wanting to take out, and how much Sweetcoin (SWC) you own.
SWC can be used to lower your effective interest rate via cashback. The more SWC you allocate in your wallet to cashback, the more cashback you receive every month which lowers the cost on all in-network expenses such as interest.
Step 3: Get the money you need in the currency of your choosingThe options and opportunities are significant: invest in a business you believe in, fund new inventory for your business, buy more SWC and get better interest rates on your existing loan, or pay off high-interest credit. You will have the cash you need to do what you want.
What if you need a payment holiday?
What if your asset appreciates?
What if your asset depreciates?
Example 3: Real-world Assets
Liberate the value trapped in your vehicle or your fleet of vehicles
Vehicles are one of the most commonly held asset classes. Individuals and corporations alike hold vehicles which are often a necessary drain on their resources. Interest rates on vehicle loans are notoriously expensive. Currently, the only option for getting value out of a vehicle is either selling it or taking out an expensive vehicle title loan. At Sweetbridge we believe it doesn't have to be that way.
Proof of Concept - United States
Sweetbridge Lend is a blockchain-enabled vehicle loan product being designed to offer affordable, vehicle title loans and purchase financing. It is being developed as an “Arizona sandbox” application. Approval in the Arizona Sandbox will allow Sweetbridge to test the vehicle collateralization and loan product with US consumers in anticipation of wider distribution and card integration if successful.
Sweetbridge is a global network of companies building protocols for commerce that allow organizations to unlock liquidity from assets they already own. Sweetbridge is developing a lending protocol for locking a digitized title or representation of an asset in a blockchain-based smart contract. Once locked, the protocol releases a portion of that asset’s value in the form of a virtual currency called BRC (Bridgecoin), which can then be either used as currency within the Sweetbridge economy or redeemed for fiat currency.
This particular service enables a Sweetbridge member to use their vehicle title as collateral to access liquidity or purchase vehicles in niches where traditional financing is often too costly.
Due to regulation in the UK and the EEA (European Economic Area) relating to consumer-based lending (see section 5.2 of the FCA Consumer Credit Sourcebook), Sweetbridge cannot offer the same financing solutions to customers residing in the UK or the EEA at this time.
The above is intended only as an example. Loan options available are dependent on legal jurisdiction, asset class, and transaction history within the wallet.