Finance

Crypto Borrowing for Business Expansion: Case Studies and Insights

Published

2 years ago

June 23, 2023

Rene Turrek

crypto-borrowing-for-business-expansion-case-studies-and-insights

In the dynamic world of digital finance, cryptocurrencies have revolutionized borrowing and lending practices, offering unique opportunities for businesses to expand their operations.

This article delves into the world of crypto loans for business growth, providing case studies and invaluable insights into this groundbreaking approach. Before we begin, we want to offer you a reliable platform where you can loan Bitcoin – WhiteBIT.

The Essence of Crypto Borrowing

With the rise of decentralized finance and the adoption of blockchain technology, platforms facilitating crypto borrowing and lending have gained prominence. These decentralized networks present an alternative to traditional financial institutions, offering businesses transparent and accessible solutions to secure capital for expansion.

Some cases:

Unlocking growth potential. Consider the example of Company X, a successful e-commerce platform aiming to scale its operations. Conventional loans proved cumbersome with high interest rates and intricate approval processes. Instead, the company explored taking up crypto from a DeFi platform. By pledging their existing digital assets as a deposit, they gained access to a loan with favorable terms. This infusion of capital enabled them to expand and launch targeted marketing campaigns, propelling their growth without compromising their financial stability.
Financing for startups. Let’s examine Startup Y, a pioneering blockchain technology startup seeking funds to launch its groundbreaking product. Traditional fundraising methods presented hurdles, including extensive investor due diligence processes. In pursuit of an alternative, the startup company conducted an ICO, issuing utility tokens to investors in exchange for cryptos. Through this ICO model, the startup successfully raised substantial funds, which were channeled into product development, marketing endeavors, and overall business expansion.

Crypto borrowing provides businesses with an alternative to traditional loans, opening doors to capital without the constraints imposed by conventional financial institutions. While borrowing presents exciting opportunities, prudent risk management is crucial. Assessing the volatility and associated risks of the market and considering stablecoins or implementing conservative loan-to-value ratios can help mitigate potential downsides. Cryptocurrencies are evolving, and regulatory frameworks are catching up. Businesses must stay updated on relevant regulations and compliance requirements to navigate crypto borrowing effectively.

Leveraging crypto lending for business growth presents innovative solutions to traditional borrowing challenges. As the crypto market matures, businesses should carefully assess the benefits, risks, and long-term implications before they borrow crypto with collateral. By harnessing the power of this new financial paradigm, businesses can unlock promising opportunities for expansion and drive future success.

Finance

Everything You Need to Know about SVG Permit When Making a Decision

Published

1 year ago

December 3, 2023

Rene Turrek

what-should-you-know-before-getting-an-svg-forex-license

Many companies strive to simplify the process of receiving a work permit, so they prefer offshore jurisdictions.

SVG offers favorable legislation, low financial costs for getting an SVG Forex license, and a favorable tax policy. If you plan to engage in brokerage activities in the market, you will need to obtain a permit and meet the Regulator’s demands.

How does permitting control work?

The FSA exercises control over non-banking companies and helps ensure stability through a competent assessment of possible risks associated with firms’ activities. Through monitoring and on-site audits, the FSA regularly analyzes various financial indicators and checks organizations’ reporting for compliance with established demands.

The state has many legislative documents that form the legal basis for providing financial services. Let’s list some of them:

Financial Services Management Law – regulation of financial activities and issuance of licenses;
Securities Law – controls the activities of firms whose activities are related to the trading, issuance, and exchange of securities (including the Forex market);
Memorandum of Requirements for BC and LLC – defines the demands for organizations in the Forex market;

Law on International Business Companies – controls the activities of firms, including in the market;
Currency Control Act – regulation of foreign exchange financial transactions and supervision of compliance with established demands.

It is only part of the legislative framework. There are also laws to combat AML/FT, ensuring cybersecurity and protecting consumers from financial risks.

Demands

To obtain a permit, you must fulfill several demands. Your firm must have at least 1 director, 1 shareholder, and a secretary. One of the directors must be a resident of this area. You must register a firm office and give the company a unique name using the LLC form. You must also present valid licenses from the states where the organization provides financial services. It is critical to comply with local legislation and include an AML and KYC (know your customer) policy in the company’s activities.

Stages of starting a firm

Let’s consider what stages an organization will need to go through to register the legal activities of a broker in this area.

Decide on the firm name

The company name must be unique and not appear in the SVG company register. In addition, the company abbreviation must imply the LLC form, and Limited or Ltd must be added at the end of the name. Using a name that would indicate royal or government institutions is strictly forbidden.

Collect a package of papers

In the first stage, your firm will be required to provide papers, which will include the following:

fill out an application for a permit;

notarized identity cards, confirmation of registration, and certificate of good conduct for the company’s staff;
corporate documents;
office lease agreement with a registered legal address;
a detailed business project indicating the structure and activities of the company;
a document confirming the availability of sufficient financial resources;
implementation of internal control (AML, KYC, audit, reporting).

Also, at this stage, it is necessary to pay the state licensing fee (225 euros) and the annual fee (4000 euros). Before submitting the application and papers, carefully study the requirements of the Regulator.

Apply for business registration

Next, you register the firm in the Register of Companies based on the requirements. The registration process can be completed remotely within a few days. The application and the collected package of papers are sent to the Regulator, who will carefully check them for compliance. If there are inaccuracies, the regulator may request additional data.

Open a bank account

The next step will be to open a corporate account for the firm. It would be best if you chose a bank that meets your financial demands, supports the activities of brokers, and follows the AML policy.