NECESSITY AND RELEVANCE OF THE NEW PLATFORM:
Many small farmers do not have access to banking. Due to lack of available private capital in their geographical area, they must bid to get it, because the lender capital is limited.
**This means they offer to pay interests even higher than 120% per year to obtain the required financing. **
Their crops generate enough benefits to cover these rates, but their profit is heavily reduced, and cash loans do not even leave them with a record of their payment history. On the other hand, socially responsible lenders in developed countries do not have access to positive impact projects with high profitability and affordable risk.
SOLUTION PROPOSED BY
- Ethic Hub is an investment platform that universalizes access to highly profitable positive impact projects, by
directly connecting investors to projects rated by risk level.
- EthicHub is a global crowdlending platform that allows access to small groups of manufacturers from developing countries to lower lending rates than they are now available to them, benefiting both sides of this exchange.
- EthicHub capitalizes on trust: Human-Based Economics, economic credibility based on human relationships and relational assets of society: proximity, communication, support, reference and commitment.
EthicHub will make credit and investment opportunities available to everyone. With low-interest rates and access to large markets around the world. Ethichub uses Lendingdev to provide services. The temporary function is to define and establish platform procedures and mechanisms to enable decentralization thereafter to reach the optimum conditions to become autonomous.
- THE USE OF BLOCKCHAIN TECHNOLOGY PROVIDES THE NECESSARY SECURITY AND REDUCES THE COST OF CONVENTIONAL MONEY (FIAT) TRANSFERRING.
- ONLY POSITIVE IMPACT PROJECTS: FOCUSED ON UNBANKED FARMERS WITH PROFITABLE PRODUCTIVE ACTIVITIES, WHICH ARE PART OF A COMMUNITY WITH TRUST CIRCLES WE WANT TO CONVERT INTO VALUE. A GOOD CREDIT HISTORY WILL GIVE THEM ACCESS TO BETTER CREDIT CONDITIONS.
- TRUST: LOCAL NODES (INDEPENDENT PROJECT RECRUITERS) IDENTIFY AND EVALUATE NEW PROJECTS BASED ON THEIR EXPERIENCE AND PERSONAL CONNECTION TO THE BORROWERS AND THEIR COMMUNITY. THEY ONLY OBTAIN BENEFITS WHEN THE RESULT OF THE PROJECT IS POSITIVE.
- GUARANTEE FUND THAT REPURCHASES LENDERS’ CREDIT RIGHTS, MINIMIZING THE RISK OF DEFAULT FOR THE LENDER AND ALLOWING AN ETHICAL RECOVERY OF THE DEBT
Our methodology to select and assess ventures depends on individuals. At Ethic Hub, Local Nodes are individuals connected to the group they serve. They benefit straightforwardly from keeping up and expanding their reputation in view of the precise valuation of the activities they select.
Local Nodes likewise create another upper hand: they are the most ideal approach to distinguish clients (presumably the best issue of decentralized P2P credit stages, since it is difficult to approve the presence, nor moral nature of somebody requesting a miniaturized scale advance from over the world).