Crypto-backed Loans

9 September, 2020

Financial Options – SME Loan Broker And Crypto Lending

by Alphonse Durepos

in Cryptocurrency

Finance Brokers provide assistance to consumers looking for the right kind of loan that will meet and match their unique financing needs and conditions. In order to effectively do this, a Finance Broker lay their knowledge, expertise and experience throughout an extensive range of products from numerous lenders. They make every effort and initiative to recommend products that they believe, from their expertise, will suit the goals and needs of clients.

SME Loan Broker – Who Are They?

SME Loan Broker from Avant Consulting does just that. They offer a gamut of loan brokering services, which includes Temporary Bridging Loan, Hire Purchase, Industrial Property Loan Financing, Commercial or Shophouse Property Loan, Mortgage Refinancing, and Residential Financing to name a few. As they are dedicated to provide excellent service, they closely work with every client they have to ensure that their financial option is modified and fitted to their specific corporate needs and individual needs as well as lessen interest rates and other fees for them.

Such financial expert is imperative for consumers to explore and discover every financing option they have. They establish rapport, build client’s confidence and trust as they make such crucial financial decision.

In essence, a loan broker is an individual or a firm that functions as a go-between or financial intermediary for a borrower and a lender. Traditional as well as non-traditional lenders utilize the services of brokers to provide and complete all the needed applications, documentations, as well as all the processes to assist borrowers throughout the loaning process.

Crypto Lending – What Is It?

While many choose traditional loan financing that require the usual collateral, there are borrowers who opt for crypto lending. This trend has opened up possibilities for both big and small crypto players.

Crypto lending is a rather simple concept wherein borrowers make use of their digital assets, cryptocurrencies, as collateral to acquire a stablecoin or fiat loan. Lenders, on the other hand, provides the borrower the needed assets at an interest rate they both agreed upon. Crypto lending could also work the other way around where borrowers provide stablecoins or fiat as collateral to be able to borrow cryptocurrency.

To put it in simple term, crypto lending is collateralized loans. Although this may not sound rather revolutionary and innovative, crypto lending is still a powerful financial option that open up more opportunities and benefits for individual borrowers, businesses, traders, as well as users, which includes faster loan processes, increased accessibility, much more flexible loan terms, lower interest rates and fees, and higher standards of safety.

With the introduction and rise of crypto lending, the benefit and functionality of cryptocurrencies has considerably increased. While still in its stage of infancy, crypto lending is projected to grow as the size of the crypto lending market surpasses 10 billion US dollars when it comes to overall loan origination.

8 July, 2020

Cryptocurrency As Loan Collateral

by Alphonse Durepos

in Cryptocurrency

Personal loans are an amount of money borrowed from licensed lenders which you could use for various reasons, such as for big purchases and emergency expenditures. These loans are settled or repaid typically on a monthly basis for a certain period of time depending on your situation as well as how diligent you are at settling your payments. Personal loans could be very beneficial as long as you use it well and could manage to repay it.

If you need a personal loan, always transact with a licensed money lender. For instance, credit loan is a licensed money lender in Singapore providing high-quality loans that will match your every need. With their innovative digital solutions, their loan process is easy, convenient, quick and very much secure.

Credit loan has been in service for more than 17 years. That is 17 years of experience in the financial industry. And within those years, they have made over 200 thousand clients happy and very much satisfied with their lending service making them a very reliable and credible lending company to transact with. So, if you want to be a happy client as well, choose a licensed, credible and reliable money lender for a conveniently smooth process, from the application stage to repaying your loans.

Secured And Unsecured Loans

Loans could either be unsecured or secured. Unsecured loans don’t need any form of collateral to be able to borrow some money whereas secured loans require you to provide a collateral that you agree to give up to your lender in the event that you cannot settle the loan. A few examples of accepted collateral are personal or business car, real estate, investment accounts, and valuables like jewelry, fine art or collectibles.

A more modern form of collateral are your cryptocurrencies. Cryptocurrencies (cryptos) are digital currencies that aren’t controlled or regulated by any government unit or by any financial authority. There over 1,000 kinds of cryptocurrencies, Bitcoin being the first ever to be released in 2009.

What are crypto-backed loans and why consider taking one?

Crypto-backed loans are loans wherein you use your cryptocurrency assets as collateral. In the past, many crypto holders are forced to sell their crypto assets for fiat money if they need it. Now, instead of selling their assets, they use it as collateral to be able to borrow fiat money like the USD. This allows them to keep ownership of the assets while obtaining access to the fiat they need.

What can you use a crypto-backed loan for?

Similar to personal loans, you could make use of a crypto-backed loan for various reasons, which includes:

Purchasing Real Estate or a Home
Paying Travel or Vacation Expenses
Financing A Start-up
Divesting Investments
Settling High-cost Debts Such as Student Loans

5 June, 2020

Cryptocurrency For Stablecoins

by Alphonse Durepos

in Cryptocurrency

Although there are several reliable and trusted money lender Singapore, picking the right one that would suit your needs could be a tedious and frustrating process since there are numerous aspects that you need think through, including:

Licenses and Accreditation: Of course, it is crucial that the money lender Singapore has the necessary license from the government showing that they are operating legally and have met all the imposed standards and requirements. It has to be accredited by professional bodies as well to show it is a reliable, trusted and professional moneylender.
Reputation: Reputation is weight aspect to consider. Nowadays, people rely on reviews from previous clients to see how well they interact with people and provide their service. Money lenders with excellent reviews have excellent reputation.
Fees: All certified moneylenders will charge a certain fee when you get a loan and for the services they provide. Hence, look into these fees and compare them with other money lenders. Also ensure they are reasonable and affordable.

Crypto-backed Loans

Usually, moneylenders require some type of collateral for a loan to be approved. While borrowers provide collateral like their home, their car or other assets and property they have, others make use of cryptocurrency to back their loans.

As many are already aware, borrowers are able to make use of their cryptocurrency assets to serve as collateral when loaning fiat currency or stablecoins from lenders who accepts cryptocurrency as a collateral. This could actually work the other way around as well wherein borrowers make us of fiat currency or stablecoins as the collateral to borrow cryptocurrency assets.

What are Stablecoins?

Stablecoins provide a lot of benefits that other cryptos don’t offer. Although they are similar to cryptocurrencies, stablecoins are more stable, as its name implies.

In a market wherein the value of the assets that one holds violently fluctuates, the choice to ‘store’ the value of funds in a manner that it eliminates volatility is rather crucial. Such option isn’t only for crypto traders, but also to retailers accepting cryptocurrencies without having to worry about the values fluctuating.

In most circumstances, most of the stablecoins are pegged or attached to broadly utilized fiat currencies, whereas some are pegged on commodities like as Gold.

What Are They Used For?

For numerous crypto traders, stablecoins serve as a fallback or an alternative when they would like to hedge their crypto without having to cash out to fiat currency. This is quite effective particularly when markets are bear or if the intend to keep revenue in fiat. The currency of the world, after all, is still fiat not cryptocurrencies like Bitcoin.

Stablecoins are expected to develop into a significant element in decentralized finance, popularly known as DeFi. DeFi offers an alternative to the present financial systems and structures with one that is designed and created on public blockchains.

As mentioned, stablecoins are also use for peer to peer loans. If DeFi is to progress and expand, stablecoins will surely play a significant role since people will be needing a way of transacting with one another without the volatility, and without wasting or losing advantages of cryptocurrencies.