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the-creditor.md

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The Creditor

Who: A creditor is someone who loans money to another person and expects to be paid back later.

How does our system affect a creditor? We provide reduced risk to a creditor. When she transfers money to a debtor, she gets prefs in that account. Her potential profits are much higher than the interest to be gained and her loss is reduced due to the recursive nature of pref payments. Even if a debtor 'clears out' and the creditor agrees to waive all outstanding debts, the creditor will continue to reap pref payments going into the future. The creditor's risk is no longer 100%.