Put idle BSV to work in businesses that make things

What you are actually buying

A fraction of one loan to one company. Not a share of a pool, not a token, not an exposure to a strategy. If you lend 5 BSV into a 320 BSV loan you own 1.6% of that loan’s schedule, and you are paid 1.6% of every instalment the borrower makes.

The trade against a pooled product is a real one. You take single-name risk rather than a diversified average, and a single default lands on you in full rather than being absorbed across hundreds of positions. What you get for it is a named counterparty: a published credit memo you can disagree with, a borrower you can question directly, and a vote on what happens if the loan goes wrong. A pool gives you the average and takes the say.

If the diversified average is what you are after, the Builders Fund is the pooled product: one decision, spread across the book, with a first-loss tranche in front of it.

Where the money comes from

The coupon is paid out of the borrower’s revenue. Not out of new lenders’ capital, not out of a token emission, not out of a treasury. Every listing shows what that revenue is and what covers the coupon: 2.4× from contracted software revenue on one loan, 58% from standing grocer orders on another, and on one of them nothing at all yet, which the memo says in the first paragraph.

How to size a position

• Read the grade first, the rate second. The highest coupon on the platform is on the loan with the thinnest revenue base. That is not a coincidence and it is not a bargain.
• Assume the C-grade positions are gone. If losing the whole position would change your year, it is too big.
• Check the term against your own horizon. There is no early exit as of right. A thirty-six-month loan is thirty-six months.
• Read the collateral literally. A charge over stock is worth something in a workout. A charge over a repository is usually worth very little, and the listings say which is which.

What it costs you

Nothing directly. Lenders pay no fee to lend and no fee to be repaid. The platform is paid by the borrower at drawdown and takes a 0.75% annual servicing fee out of the coupon before it reaches you, so the rate on a listing is the rate you get, not a headline to be netted down later. Full detail on the fees page.