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Vendor Finance V1
Version 1 offers users the opportunity to engage as either lenders or borrowers. Lenders have the capability to establish lending pools and levy interest, whereas borrowers can secure loans from lenders by pledging collateral.
The typical lending flow can be summarized by the following:
1) A single lender creates a Vendor lending pool with customized loan terms, and seeds the pool with their desired lending capital.
2) Numerous borrowers can contribute collateral to the pool in order to secure their loans.
3) Borrower(s) are granted the period until the loan's Repayment due date to repay. Successful repayment results in the return of their collateral while failure to repay leads to collateral forfeiture to the lender while retaining the loan. This is also know as a Default. The lending pools also accommodates partial repayments, enhancing borrower flexibility.
More detail can be found in the following sections.