Community Financing

SMEs face unique challenges when it comes to financing their operations and growth. Traditional financing options such as bank loans and venture capital can be challenging to secure, especially for newer or smaller businesses. However, the emergence of web3 technologies such as blockchain and cryptocurrencies has opened up new possibilities for SMEs to finance their operations.

CornerMarket will launch CornerCredit, a web3 credit product designed to provide business financing opportunities for SMEs through peer-to-peer lending. Merchants will be able to issue digital bonds on the CornerMarket platform to raise capital from the community (DAO). Digital asset holders can lend their idle funds to earn interest from third-party borrowers.

Merchants will complete a loan application on the CornerMarket platform with details like business financials, revenue model, use of funds, etc. The DAO will review the applications and issue bonds to the most qualified businesses and determine the interest rates for lenders based on market conditions.

Approved merchants will receive the bond amount in cryptocurrency, which they can use as working capital, for marketing, or to cash out their business to serve CornerMarket users in the future. They can exit their position early if they need to.

The principal amount of the bond and the interest it earns will be returned to the community after the loan term is complete. Lenders can choose to lend to businesses they believe in, and the DAO will determine the bond terms like duration, interest rate, etc.

Corner Credit aims to leverage Web3 infrastructure to enable new finance models by giving people more control, transparency, and access to financial tools. Both businesses and individuals will benefit from lower fees, faster transactions, and secure peer-to-peer lending.