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 loan

The 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 choosing

The 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 happens if your ability to make payments isn't what it was when you set the terms of the loan? No problem. Since you're the only party in the transaction, it's possible to pause the loan at any time, if you have enough credit to minimize your risk. It's also possible to reevaluate and change the terms of the loan. You don't have to let one hardship turn into a bigger hardship. You can choose to pause the loan without the risk of losing your asset because of a few missed payments.
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What if your asset appreciates?

Congrats! You just made money! That appreciation is all yours. You can unlock your asset and sell it at the appreciated price or continue to hold onto it. It's completely up to you.
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What if your asset depreciates?

If your asset depreciates below a certain risk evaluation (determined by the asset class and disclosed to you before you locked it in your wallet), then a smart contract will issue you a warning letting you know you need to adjust your loan. You can adjust your loan by paying off some or all of the loan, or exchanging the asset for another of greater value, or adding additional assets to your line of credit. If you don't take any of these actions, then the smart contract will sell some or all of your asset (depending on the rules for that asset class) to pay off some or all of the debt. What happens here is very dependent on the kind of asset you have locked into your wallet and its risk level. We're designing a system to minimize your risk and help you protect yourself and your assets.
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Example 1: Accounts Receivable

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Businesses regularly have outstanding invoices, money that they are waiting to receive. Long payment terms can cause problems for large and small businesses alike. With Sweetbridge, there will be two ways you can self-finance* your accounts receivable. Let's look at an example to illustrate what we envision being possible for businesses:

When Company XYZ first became a member of Sweetbridge they were excited about the ability to self-finance* their accounts receivable. They recently started selling their product to a big retailer who sometimes doesn't pay until sixty days after delivery.

At first, they uploaded all their invoices into the Sweetbridge wallet. Doing this they were able to borrow against 60% of their accounts receivable. They didn't own any SWC so their interest rate was 8%, which, though still lower than most invoice financing, felt a bit high for Company XYZ.

Doing this for a month or two helped them expand and sell more inventory, but they didn't like how much they were paying in interest. They didn't have extra money to buy SWC, but they loved the idea of the rewards program and decided to join. After a few months of participating in the rewards program, they were able to earn enough SWC to drop the interest rate for their loan down to 7%.

They then learned that there was another way to self-finance* their invoices. Rather than uploading their invoices manually into the Sweetbridge wallet, they could use the Sweetbridge accounting protocol to integrate all of their invoices into their Sweetbridge wallet. In a short space of time, all of their invoices were automatically being processed through smart contracts in their Sweetbridge wallet. Doing this enabled them to save time, but it also had an additional benefit. Now that Sweetbridge could verify all of their invoices, they were viewed as more trustworthy. Now they were given the option to borrow against 90% of their accounts receivable. They were also given a better interest rate of 5%.

Company XYZ grew. They implemented better benefits for their employees and were able to grow their team. They had the extra capital necessary to increase productivity and expand into new markets.

All of this could be possible with the Sweetbridge protocol, but we need your help to make it a reality in every country.

*Self-finance can be defined as providing liquidity (asset finance) using assets as collateral. We are using technologies that include blockchain and digital tokens that lower the credit risk, hence the cost of capital, allowing us to distribute the benefits back to Sweetbridge members in the form of rewards and discounts.

The above is intended only as an example. Loan options available are dependent on legal jurisdiction, asset class, and transaction history within the wallet.

Example 2: Cryptocurrency

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Liberate your cryptocurrency value

You can liberate the value of your cryptocurrency without having to sell and without a tax consequence. You can continue to gain the benefits if your crypto assets appreciate while accessing the value now.

Let's look at an example. Mike bought Ether when the price was low and now owns $80,000 worth. Mike wants to buy a new car. He knows he could sell some or all of his Ether to pay for his car purchase, but he believes it will be worth more in the future and doesn't want to sell. Here's what Mike could do:

  1. Mike locks his Ether in his Sweetbridge Wallet.
  2. Mike decides the terms of his loan. He wants to take out $40,000 for a car he likes. This is an option that's available to him for this asset class. He decides the length of his loan will be 3 years and he decides he will make payments the day after he gets his salary paid each week.
  3. Because Mike also owns Sweetcoin (SWC), he is given an option to decrease his effective interest rate via cashback to 3%. The more SWC Mike own’s, the lower his effective interest rate.
  4. $40,000 is automatically deposited into Mike’s wallet in the currency of his choosing.

Mike also participates in the Sweetbridge reward program and gets his new car insurance through a Sweetbridge Seller who offers cashback to Sweetbridge members who allocate SWC towards cashback. Mike allocates his SWC rewards to further reduce the interest rate on his self-financing car loan, which helps pay off his loan quicker than planned.

All of this is possible with the Sweetbridge protocol, but we need your help to make it a reality in every country.

The above is intended only as an example. Loan options available are dependent on legal jurisdiction, asset class, and transaction history within the wallet.

Example 3: Real-world Assets

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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.