LBT - lending and borrowing using gold as collateral

GoldNRollGoldNRoll Posts: 234 Bronze ✭✭✭
I'm a big fan of peer to peer lending and a big fun of gold so I was very excited and curious about Lend & Borrow Trust Company (LBT) when it launched.
My account was approved very fast. Basically, having a fully verified Goldmoney holding works as a quick validation for LBT accounts. Gold deposited with Goldmoney can be directly used as collateral when borrowing.

So I was curious about the size of the market, here's the answer: in one month, 6 new auctions ranging from 80000 GBP to 470000 EUR, average interest about 3.75% :p
I was expecting to see more auctions for small amounts...

LBT is on top of my list when considering P2P lending and borrowing. Now I'm just happy to share my referral link :smiley:


  • RocketDogRocketDog Posts: 826 Silver ✭✭✭✭
    Thanks for highlighting this service again. I read about it when it was first announced, and then forgot about it. I think it might be a great way to lend.
    I used to participate in Lending Club until the banks got involved and automated everything and funded every loan, whether good or bad, and supplied so much money, that individual lenders like me didn't even have time to read the loan requests or business plans before the loans were fully funded. Then, since institutional investors weren't reading the loan applications at all, the prospective borrowers stopped filling that information out. Now funding a loan on lending club is just a numbers game. It's all done by credit score, and a couple of other criteria and you don't even get to learn about the borrower at all. And it's not peer to peer either. And the rates are actually quite high for borrowers and there is nothing a lender can do to offer a lower rate than what is set by lending club.
    I will definitely sign up for this when I get a chance (and use your link).
  • GoldNRollGoldNRoll Posts: 234 Bronze ✭✭✭
  • Lend_Borrow_TrustLend_Borrow_Trust Posts: 1 Tin ✭
    Thank you for mentioning LBT in the Goldmoney Community.

    Regarding your comment about Auction amounts, the minimum borrowing amount is £25,001 for businesses and £60,261 for individuals (or currency equivalent). So these will be the smallest amounts you may see in the LBT P2P-Marketplace.
  • GoldmattersGoldmatters Posts: 4,073 Admin
    @Lend_Borrow_Trust thanks for weighing in here and welcome to the community!
  • GoldNRollGoldNRoll Posts: 234 Bronze ✭✭✭
    Thank you for the information, good to know!
  • TheRaveneerTheRaveneer Posts: 109 Bronze ✭✭✭
    Lend, Borrow and Trust? Really? It looks complicated as hell. You have to fully fund $60k loans all by yourself? Who is going to do that? And do you deposit funds, or can you allocate your Goldmoney holdings as collateral and how does it work and what does it look like?

    Honestly, why the hell would you use that website when you can use LendingLoop, risk less cash, get far more return, and way more diversified.

    The only interesting thing about this thread was the bots/banks comments about Lending Club made by RocketDog. Thanks for that. Loans on LendingLoop are blasting to completion because of their AutoLend. Anything under $60k gets filled immediately. Interesting dynamic.
  • RocketDogRocketDog Posts: 826 Silver ✭✭✭✭
    Hi @Raveneer. There is no doubt that LBT requires a much greater investment than other lending platforms. However, the loan you make is fully backed by the borrowers gold on deposit at GoldMoney. Therefore, if they default, you get their gold. That's a really interesting feature. So, obviously this is lending by and for people who already have some significant savings. A different crowd than Lending Club.
    If a person wants to earn interest on gold (which some people say cannot be done), this might be one way to nearly earn interest on gold. A person who had enough of their own money in real estate might decide that the market is really inflated now and opt to sell their property and use Lend Borrow Trust instead to loan that money out, knowing their loan is backed by gold.
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