Working Capital

Credible offers quick access to overcollateralized credit lines in stablecoins, enabling businesses to meet short-term capital needs without lengthy applications or high costs.

Businesses often face short-term working capital needs to finance operations, purchase inventory, or cover unplanned expenses. Unlike traditional financing methods, which may require credit checks or lengthy application processes, Credible provides businesses with quick access to overcollateralized credit lines that can be used for short-term working capital needs.

How It Works:

• Collateralization: To access credit for working capital, businesses provide crypto assets as collateral. This allows them to tap into liquidity without the need for lengthy credit checks or a traditional loan process.

• Stablecoin Loan: The business is issued a loan in stablecoins, which can be used for various operational expenses, such as buying inventory, paying suppliers, or managing overhead costs.

• Repayment: The business repays the loan once its revenue is received or when other funding sources become available. As with other use cases, repayment is made in stablecoins, and the amount of collateral is monitored for fluctuations in value.

Benefits:

• Quick Access to Capital: Enables businesses to quickly secure funds without the wait times associated with traditional loans or credit applications.

• Cost-Effective: Businesses avoid high-interest rates or equity dilution by using their own crypto assets as collateral.

• Flexible Use: Funds can be used for a wide range of short-term capital needs, allowing businesses to stay flexible and agile in response to market conditions.