There comes a time in every company’s journey where they take the next step to grow their business. Whether the company is product or service-based, business owners are always looking for new opportunities to expand their operations or expose their brand to new potential clients. This can be an expensive undertaking and involves a significant amount of financial planning.
Fortunately, other opportunities to obtain funding exist. One of the most popular methods is collateralized loans. This involves a business leveraging its assets towards the loan funding. The benefit of a collateralized business loan is that businesses can acquire funding even with below-average credit. Because these loans are backed by an asset, the interest rate and APR will typically be lower than unsecured loans.
BlockFi supports business owners worldwide, providing low-cost credit in countries where people do not typically have access to similar rates.
Collateralized loans are a great option for companies worldwide that hold or get paid in crypto but need cash for everyday expenses. These types of loans are a popular way to use crypto assets without selling and get access to USD at very affordable interest rates.
Business owners that accept crypto as payment or own crypto as an investment have the opportunity with BlockFi to use their Bitcoin (BTC) , Ether (ETH), Litecoin (LTC), or PAX Gold (PAXG) to get USD funding straight to their bank accounts — all without having to sell. By taking advantage of collateralized crypto business loans, you can fund a business expansion with ease. These activities might include:
- Introducing New Products or Services
- Expanding Outreach and Marketing Operations
- Opening a New Store Location
- Covering Overhead Expenses like Payroll, Rent, Utilities, etc.
Additionally, collateralized business loans do not put as much weight on profitability. For example, BlockFi does not require business clients to provide tax documents when applying for a loan under $250k. This makes it significantly easier for growing companies to access capital. If market prices are low, a crypto backed loan lets you continue funding day-to-day commercial expenses without having to sell your crypto assets. Then, once the price recovers, pay off your loan at any time without penalty.