Blackmoon recently stated that it would be soon expanding its services into the US. This comes as a great news for both balance-sheet lenders and investors alike. The launch of Blackmoon in the United States will create a more advanced and highly efficient model of managing balance-sheet and marketplace lending. So who or what exactly is Blackmoon?
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What is Blackmoon?
Blackmoon is basically a securitization agent run by advanced technology and best business practices. The company offers asset managers with access to loans from balance sheet lenders. Blackmoon’s “marketplace lending as a service” approach creates a market where institutional investors can safely invest in loans originated by balance-sheet lenders. The company was founded in 2015 and has since then developed highly efficient technologies to handle complexities involved in issues such as loan analytics. Today, Blackmoon is a leader in the newly created marketplace lending as a service industry.
Investors and lenders in the United States are probably wondering what benefits or improvements in the industry the new company will provide. The key benefit will be the introduction of a hybrid approach to the marketplace lending and investment arena. There has been a growing interest, and resultant popularity in marketplace lending, so much that the sector has constantly suffered fraud allegations. Some of its players have at one time come under close scrutiny allegations of fraud and other business malpractices. Balance-sheet lending, on the other hand, is more established in the US, but has been quite stagnant in scalability and capital adequacy. Blackmoon’s entry into the market is expected to provide the best of both worlds to both balance-sheet lending and marketplace lending sectors.
Another important benefit Blackmoon brings into the lending industry in the US is the introduction of more professional practices used by rating agencies. Blackmoon’s platform is supported by machine-learning algorithms which are fine-tuned to determine specifics of every loan generator and ensure there is transparency and fair funding cost.
Blackmoon is able to provide all types of lenders, including even banks, with a scalable and transparent marketplace. This will mean that lenders can easily scale their operations and lock in more profits in a safe and reliable platform. Investors, on the other hand, will have access to a constant supply of loans and a host of useful advanced analytical tools. The company’s loan assessment algorithms ensure transparency for the benefit of both parties.