What Embracing Crypto-Backed Lending Means for the Finance Industry


22 May 2021


Embracing Crypto-Backed Lending

You probably know that cryptocurrency is becoming more in-demand with each passing year. Bitcoin is extremely popular, but other forms, such as Ethereum, are also making a splash. However, some financial institutions are reluctant to fully embrace cryptocurrency, thinking it’s just a flash in the pan.

In time, they may want to change their tune since the finance industry seems poised to allow companies and individuals to use cryptocurrency for more mainstream transactions. Once they do so, they can take on new clients in a variety of industries and niches.

The LQD Business Finance company is one that recently started embracing crypto-backed lending. Let’s look at what they have to gain by doing so and what this strategy means in the larger finance industry context.

The First Bitcoin-as-Currency Commercial Lending Platform:

The First Bitcoin-as-Currency Commercial Lending Platform:

For LQD Finance, transforming the finance industry is nothing new. They periodically use emerging technology as it becomes available if they feel it will benefit their would-be clients.

By setting up the first Bitcoin-as-currency lending platform, they can take away the mindset that it’s strictly a digital asset. If you’re a business owner, and you have invested in Bitcoin heavily, as so many have, this is probably what you have anticipated. Now, you can utilize that cryptocurrency for buying and selling various business assets that your company needs.

There are three particular ways this step by the LQD Business Finance company will alter the financial industry’s cryptocurrency outlook. Let’s go over each one.

Broader and More Wide-Ranging International Applications:

Many businesses want to take their sales to the next level, which means going international. US-based companies often take this approach at a certain point, but so do foreign ones.

Either way, these businesses can face logistical challenges. For instance, they might generally utilize their own country’s currency, and they find that foreign suppliers are reluctant to accept it. They can use banks or finance companies to exchange their currency, but that’s time-consuming and potentially frustrating since they must pay fees if they go this route.

Cryptocurrency like Bitcoin is an international monetary form. When a well-known company like LQD Business Finance says they’re setting up a lending platform using it, many businesses are likely to want to jump on that opportunity. They know they can use Bitcoin in any market because the world decides its worth.

Customer Satisfaction is More Likely:

The second way this decision will shake up the finance industry is that customer satisfaction with this type of lending platform is highly likely. Cryptocurrency investors have certainly made plenty of money off trading this commodity up to this point, but they have more ambitious plans for it. This is the first huge sign their patience is paying off.

Bitcoin reaching the mainstream market through a lending platform in this way means the larger and more prominent lending companies are starting to come around. Many small and mid-sized businesses that own Bitcoin and have waited for this day are going to move aggressively within their niche because they know they have a reputable financial institution backing them.

Individuals Can Diversify Their Portfolios Like Never Before:

The third shakeup that’s likely to occur is that investment-minded individuals can diversify their portfolios more aggressively than they could previously. A major commercial lender treating Bitcoin as actual currency instead of a mere niche investment means that clients can completely rethink their investment strategies.

For instance, someone who would not sink any real money into Bitcoin up to this point might make their move now and buy up quite a bit of it. Cryptocurrency mainstream success is something that serious investors can’t ignore.

You might have an individual investor or day trader who buys Bitcoin aggressively now. You may have a hedge fund manager who has hundreds or thousands of clients in tow, and they decide Bitcoin is the new must-have. Either way, a diverse portfolio from this point forward is almost always going to be the one that includes Bitcoin.

This is probably far from the last lending company that will accept Bitcoin in this broader way. It was likely to happen at some juncture, and the moment has come.

It will certainly be fascinating to see which other cryptocurrencies will reach this favored status. Some seem to be on the mainstream success borderline, but watching lending companies like LQD Business Finance will always be a strong indicator. You know they would not make this move unless they were certain of Bitcoin’s newfound legitimacy.

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I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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Payday Loan

4 Payday Loan Facts You Should Know Before You Borrow

Convenient, speedy, and available with bad credit. These are just some of the benefits of getting payday loans, but do these stats give you the whole story? Keep reading to find out more about this kind of small-dollar loan. 1. You Can Find Online Payday LoansPeople often lump in payday loan lenders with check-cashing businesses and pawnshops. And it makes sense — all three organizations provide small-dollar, short-term loans with high-interest rates.However, payday loan lenders are unique in that many of them operate online with no physical branch. Instead of walking through the doors of a brick-and-mortar store, you can fill out an online application for quick cash from your phone or laptop anywhere, anytime you have data.If approved, your borrowing experience unfolds entirely online, too — from collecting your funds as a direct deposit to arranging an automatic withdrawal to come out of your account.Check cashers and pawnshops, on the other hand, do all this the old-fashion way: in person. 2. Fewer People Used Payday Loans During the Pandemic According to the Pew Charitable Trusts, approximately 12 million Americans used at least one payday loan in 2010 — whether from a storefront or online payday lender.Now more than 10 years and a global pandemic later, you might think these numbers should have multiplied. But early reports suggest fewer people had to rely on payday loans.The Online Lenders Alliance, an industry association for payday loan lenders, told Bloomberg the demand for small-dollar loans fell by 67% during the lockdown.Instead of borrowing, many people took advantage of unemployment checks, rent moratoriums, and other COVID relief resources. 3. Most People Use Them IncorrectlyIf you take a look at any legit cash advance direct lender’s website, you’ll see they market payday loans as an emergency stopgap when your savings fall short of what you need.In other words, you should only turn to payday cash advances in unexpected emergencies, like when your furnace dies one winter morning, and you need help covering the repairs.But what cash advance direct lenders advise and how people borrow don’t always match up. According to the Pew Charitable Trusts, 69% of borrowers use payday loans for expected expenses, like rent, utilities, and groceries. 4. Fees Vs. APR The reason why cash advance direct lenders say their loans are for emergencies is because of the cost. Let’s face it — payday loans are an expensive way to borrow. But do you know just how expensive?A cash advance direct lender might charge anywhere between $10 and $30 for every $100 you borrow. This may not sound like too much upfront, but it’s another story when APR enters the mix. Calculated on the annual percentage rate, your APR is anywhere between 300 and 600%.This APR might be OK depending on your budget, but it may be a challenge for people living paycheck to paycheck.That’s why a list like this is so important—it gives you the facts you need to make an informed decision about your finances.What’s your opinion now that you know about triple-digit APRs due back in two weeks?If this doesn’t sound like a good fit, explore alternatives like lines of credit or installment loans for bad credit. These options give you more time to pay what you owe, so they might be easier to handle on a tight budget.Read Also:5 Benefits of Car Title Loans and One Important Warning Using Short-Term Loans to Help Rebuild Your Credit Score  No Credit Rating Check Lendings Online split Second Authorization How to get a loan on a day with bad credit

Your Finances

6 Ways To Make Sure Your Finances Are Seamless

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Instead of focusing on shortcuts and quick solutions for financial stability, take steps that will help you in the long term. The best way to ensure seamless finances is to learn about them in the first place.Increase your knowledge about financing, budgeting, saving, investing, getting out of debt, etc. There are a lot of finance books written by experts that you can read to deeply understand all the concepts and tools related to finance.Another option is to take online classes and earn certifications. You can find several online options to prepare for any certification. For example, Wiley CFA exam prep will help you find all the relevant course material, online lectures, quizzes, etc., that will help you prepare.This way, you will understand things at a deeper level, and not only will you benefit yourself, but you will be giving financial advice to others soon.2. Make a BudgetMaking a budget is the primary step to reaching your financial targets. Not only do you need to make a comprehensive budget, but you also have to stick to it. Make it a habit to check in with your budget.Make a monthly budget and thoroughly go through what you make and what you spend. It is clear what you make every month, but how much you spend is a bit complicated as there are many hidden expenditures, too.Write down all your expenses in detail, like fixed costs such as phone bills and rents, etc., savings, expenses on groceries and food, expenses on hobbies and entertainment, etc.Set a target of which extra expenses you want to reduce, which positive spending habits you want to continue in the future, how much you need to put aside for paying bills or saving purposes, etc.3. Set Realistic GoalsThis advice is applicable for attaining both short-term and long-term goals. Never make unrealistic plans that you cannot keep up with for a longer time. The reason is that when you fail to achieve such unrealistic objectives, you give up completely and stop trying.First, decide what your goal is, and then make a list of practical ways to achieve it. Whether you want to buy a house or a car, pay off a student loan, reach a saving target, etc. Whatever the goal is, make it realistically achievable.For example, it is unrealistic to set an objective of paying $40,000 of debt within a year when you earn $30,000 annually. If you do want to pay off your debt, set a realistic and achievable timeline and take practical steps for it.You cannot vow to never eat out again because you want to save money for a big purchase if you currently eat out five times a week.4. Assess Your ExpendituresYou probably don’t remember the multiple subscriptions you made for different mobile applications or streaming services. And you don’t remember them because you don’t use those services.However, a sizable amount gets deducted from your bank account in the name of such subscriptions. This is just one example of how important it is to deeply analyze your spending habits.If you are no longer using a service, cancel its subscription. If you do not watch TV much often, cut the cable. Assess if you pay your bills on time each month, or do you neglect them until it’s too late and you have to pay extra late fees? Are you eating out way too frequently?Do you buy things in bulk just because they are on sale, and you don’t even use them later? It’s crucial to objectively analyze your expenditures, where you are overspending, or where you do not need to spend anything at all.5. Create An Emergency FundYou need to set up an emergency fund for any uncertain incidents. Initially, start with saving up to $500 to $1000 for your emergency fund. When you successfully meet this target, gradually keep increasing the amount that you put aside in an emergency fund.Financial experts suggest saving an amount equal to at least three months’ worth of expenses. And with time, increase this amount to six months’ worth of expenses. This way, you will have enough money to cover necessities and any financial shock.Find out something in your expenses you can give up to increase your savings, or sell unused or old things on eBay or a yard sale, etc. Add money in emergency funds by doing some part-time jobs, freelancing, etc.6. Invest Your MoneyBe strategic and invest your money to earn a return on it. This way, you will be able to achieve financial stability. When you invest, you are making money while sleeping. You can invest in financial instruments like bonds, stocks, real estate, mutual funds, etc.The annual rate of return on investment in stocks on average is 6%, 7%, or even 10%, depending on inflation.This way, investing your money in the stock market can give you a good passive income and financial security. You can ask the experts or friends and family for investing advice. While there are risk factors present, you can avert them by spreading your investments into different financial assets.If you are searching for ways to have seamless finances, you need to develop some long-term habits that will positively influence your financial situation. Here are six things you can do to achieve your financial goals smoothly.Read Also:Choosing The Right Financial AdvisorHow to Start Your Career as a Financial Advisor?The Importance Of Saving: The Bedrock of a Bright Financial Future


A Lender’s Guide to Improving the Borrower Experience: 6 Tips & Tricks

Virtually everyone will need a loan at some point in their life, whether it’s finding a home, a car, a business, or a passion project. The ubiquity of loans in today’s market means that lending is as stable as it is competitive. So as a lender, you’ll always be looking for that extra advantage over your competition and focusing on improving borrower experiences.Borrowing is often a complicated and stressful experience for consumers. If you can make your lending process as painless as possible, you’ll be able to draw higher caliber clients. As the adage goes, you catch more flies with honey than vinegar, and your loan business could be the next honeypot. Here are six tips and tricks for enhancing your borrowers’ experience and closing more deals.  6 Tips To Improve The Borrower’s Experiences Borrower experiences and the good impression of your services are bringing more consumers to your business. Consumer connections are like a chain system: one single consumer’s good feedback brings back at least two more clients for your business.Here are the six easy tips to improve your borrower’s experiences. 1. Enlist A Mobile Notary A mobile notary makes the loan signing process a cakewalk. Mobile notary services find the closest mobile notary near you and send them to your office. By using this service, you and your client can avoid those frantic lunch-hour runs to the notary public’s office. These notaries carry a two-fold benefit: they cut back on your borrower’s stress and make your agreements more legally secure. These clearances on the legal issues are directly improving borrower impression for your business. 2. Build A Close Working Relationship With ClientsWork at building a good relationship with your clients. Ask about your clients’ lives and make sure you go the extra mile in understanding their needs. Doing that will help them feel more comfortable about taking a loan from your institution. Most financial institutions come equipped with a dull and business-like atmosphere. You leave a better impression if your customers feel like they’re people rather than numbers. Your borrower and clients will come back to do more business with you, and they’ll also be comfortable enough to refer their friends and family.  3. Have An Uncomplicated Application Process Cumbersome is often the name of the game when it comes to loan approval and collections processes. However, you can change the narrative by creating a less complicated procedure for your borrower. Create a list of necessary documents and other necessary steps for the approval of loans. Then create a straightforward system that your clients can follow. If customers can survive a meeting with you without needing their financial dictionary, it’s sure to leave an excellent impression.  4. Use Online Loan ApplicationsOne way to improve the borrower experience is to use online platforms. Having to queue in an office and filling forms is a turn-off for most people. Your clients should not have to come to a physical office before they gain access to top-notch service. Create a website or application that allows online loan applications. Your online platform should allow virtual payments and account access.  5. Have A Precise Payment Plan As a financial institution, you have to dot your Is and cross your Ts. It would help if you made the loan application and collection process as straightforward as possible. Your clients should also understand the payment plan, whether weekly, bi-weekly, monthly, or yearly payments. Communicating clearly and effectively will create a lasting relationship between yourself and your borrowers.  6. Have An Open Communication System Clients experience a lot of uncertainties when they want to take out a loan. Consumers want to know the organization's policies, interest rates, and other specific information. Always be transparent with every lead so that clients know what to expect and never feel cheated. Be available to answer questions, give advice, and provide any explanation they may need to improve the experiences of your borrower. Parting Shot The growth and longevity of every business depend on its clients. A gold-standard borrower experience is a water you use on your blooming client relationships. More you focus on building up the relationship with your clients. You can make positively massive growth in your business. Read Also:Insurance Business: What Startups Need To Know 6 Things You Should Know Before Starting A Business 7 Important Advice for Start-Ups and Entrepreneurs