How important are loans between individuals?

Written by Davies on / Reading time: 4 minutes.

How important are loans between individuals?

How are they formalized? How do they work? What obstacles do they find in their path? There may be many questions in this field, but the fact is that making loans between individuals is an increasingly present action in today’s society. But, what happens when these banking operations become slow and the price is too high?

Next, we want to talk about the importance of these transactions and how they influence society. Let's go!


Something has changed

There is no doubt about that. Traditionally, banks have been the entities designed to cope with finances, but their conditions have hardened following the progress of the cyclical process of the current financial system, also known as the expansion and contraction cycle. Accessing a loan has become a task subject to many limitations and that society cannot enjoy. It is enough to walk through any bank website to look at the wide range of restrictions: solvency, income, age, application form, analysis, interest rate, investor search, loan transfer, etc.

Seeing these general conditions, it is easy to guess that those people whose income is regular and do not have some seniority in a company, but a constant volume of income, will have the most difficulty access to an ordinary loan. Requesting it is a process that takes time, and does not guarantee its application.


What if the loans are made by other means?

Over the last ten years we have heard about cryptocurrencies as the application of new formulas, emitted and controlled virtual assets, usually by its developers and that is used and accepted in members of a community. Bitcoin or Davies are two clear examples of this phenomenon. How are loans made between individuals?

Dear reader, let us tell you that thanks to these cryptocurrencies, most of the people who do not have access to financial resources have been able to enter this circle becoming the owners of their own money, achieving instant transactions at a low cost, and reducing the financial poverty that plagues the world. So, we may find ourselves in the most revolutionary way of making loans between individualswithout third parties’ conditions. This possibility will be advised in order to enforce as much as possible the claims of both parties, considering the characteristics of the loan and a non-abusive interest rate for any of them. The aforementioned action will be no more than a professional opinion of our financial technicians, it will not be binding if there is prior agreement between individuals.

In the cryptocurrency world, you put the boundaries.


The value we provide to loans between friends and family

How would it be if the verb “to lend” did not exist? Loans are nothing more than something that lent, something that is given to an individual under the condition that he/she should return it in the future. If what you exchange is money, we can say that we are talking about a credit. In our society, we go to the banks to borrow money that will be returned with a high frequency.

We also feel the need to do it with our family and friends. Imagine for a moment that a family member is far away, in a Latin American country. Suddenly, he needs money, but he doesn't know how to get it. You, as a Davies user, can do it quickly, without intermediaries in the transaction and at a very low cost. Being able to define the limits of the return, makes that business a convenient tool, useful and with the simplicity of using a simple mobile terminal.

We find ourselves day by day facing a wide range of loans, from the personal to the mortgage, and from the microcredit to the crowdfunding.

Loans between individuals are moving away from the opaque interests of banks. Many people find in this option a simple way to go unnoticed, because the use of sources of foreign fundingis something that we did not like too much because of the instability implied by the informality. Davies has put in place the formal and material infrastructure to make possible a decentralized credit institution, to give guarantees through challenging intelligent contracts before any court, and making possible the mobility of money for an impoverished society.

Are you willing to you join the change?