Suretly, a crowdvouching platform that offers an alternative to P2P lending, has announced its upcoming crowdsale. The crowdvouching model followed by Suretly works in conjunction with microfinancing organizations, where investors can vouch for a borrower by offering assurance to repay a portion of the loan amount in case of default. In return for their guarantee, they will receive compensation based on the borrower’s credit rating.

This model differs from conventional P2P lending, which requires investors to co-sign for a certain portion of the loan. In this model, a borrower is forced to get backers to co-sign for the entire amount before they can avail the funds. Suretly mainly targets short-term loans and the platform has been described as the ‘Tinder for Microloans’.

Set to launch in July 2017, the crowdfunding campaign will be managed by the platform’s Singapore fund. During the ICO, cryptocurrency community members and investors can purchase SUR tokens and contribute toward the fund. The ICO follows a successful Pre-ICO round that raised over $350,000 in under 48 hours. The ICO aims to raise between $1.5 – $8 million USD in the next round of financing by selling 15% of its existing shares. Funds raised through the crowdsale will be used to accelerate integration into new markets and countries, spearheaded by a new, soon-to-be-set-up legal entity in Singapore. The business in Singapore will also act as an official shareholder and crowdfund initiator. The SUR tokens are created over ETH blockchain for the purpose of crowdsale.

The platform has already assigned an initial rate of 1 ETH = 10 SUR for the crowdsale. It will also include discounts for the early participants of the crowdsale. During the first hour of the ICO, participants will receive 17 SUR tokens per ETH (70% bonus). Soon after, the number of tokens per ETH will reduce to 15 SUR. As the crowdsale progresses, the number of tokens will reduce daily following a linear progression until it reaches 10 SUR per ETH.

Designed to enable everyone, irrespective of their credit rating, to acquire short-term loans when in need, the crowdvouching platform allows people to buy and sell micro ‘suretyships’ — agreements that involve a promise by one party to assume responsibility for the debt obligation of a borrower. The loans are issued by microfinance organizations chosen by the borrower, provided that they attract a sufficient amount of sureties to cover the full loan. Investors on Suretly – vouchers - don’t lend their own money to anyone on the platform, and don’t have to purchase securities; they instead act as one of the numerous other co-signers, who stand guarantee to pay a small percentage of the borrower’s debt, in the event of a default.

Suretly is currently testing its crowdvouching technology for short-term loans, usually only up to 30 days. This method increases profitability for investors but also assumes a higher level of risk. As a guarantee for future repayment, Suretly will use not only fiat money but also SUR cryptotokens. The company has set up its operations in Russia and has plans to enter the US market in Q4 2017.



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