You’ve planned your crypto investments carefully. Then a golden business opportunity comes along. You need funding, but don’t want to cash out your assets.
Crypto-backed loans give you a way around that. By borrowing against your crypto, you get the funds to grow while maintaining your long-term investment position. Your assets stay in place while your business moves forward.
This blog is here to give you more perspective on how crypto-backed financing works—and whether it could work for you.
Crypto-Backed Loans in 30 Seconds: A Simple Explanation
Crypto-backed loans, or crypto asset-backed lending, are when a company uses its cryptocurrency holdings to get money for growing the business.
The funds can go towards things like opening new locations, buying equipment, or working on new services. The loan process usually happens on a specialised platform like Geddes that understands both crypto and business needs.
It is a growing option for companies that prefer not to rely on banks or venture capital and want something that works for the way they operate today.
What Happens to Your Crypto When The Funds Are Issued to You?
With this type of business funding, you hand over your crypto as collateral and get working capital in return.
Your crypto is held securely, either in a smart contract or by the lender, while you receive money to support your business. You stay the owner, but you cannot access or sell your crypto while the loan is still active.
If repayments are missed or the value of your crypto drops too far, the lender might sell it to recover their money. Once everything’s paid off, including interest, your crypto gets returned to you. It follows the same principle as other loans that use assets as collateral.
Step-by-Step: How The Process Works
Apply With a Reputable Lender
Before anything else, it’s important to choose a lender you can trust. At Geddes, we put security and transparency first. We’ve helped businesses across different sectors find funding that suits their growth, and our online application is quick, simple and designed to get you moving without delays.
Deposit Your Crypto as Security
To take out a loan, you deposit a certain amount of cryptocurrency. It stays there as security while your loan is active. This means you can still benefit if the value of your crypto increases over time.
Borrow a Portion of its Value
You can borrow a percentage of your crypto’s value. This is called the loan-to-value ratio, or LTV. Geddes offers up to 50 percent. For example, if you lock in R2 million worth of crypto, you might get R1 million cash in return.
Receive Your funds in Cash
Once approved, the money lands in your account in regular currency within the next couple of days. You can use it however you like—business, emergencies or even opportunities you can’t pass up.
Repay and Get Your Crypto Back
Once you’ve repaid the loan and any interest, your crypto is released. It goes right back into your control, with nothing lost along the way.
Why Choose Geddes as Your Crypto-Backed Loan Provider?
Speed and Accessibility
If you’ve ever applied for a traditional loan, you know how long it can drag on. Paperwork. Credit checks. Delays. Geddes simplifies things. If you’ve got crypto, you could get a loan far quicker than going through a bank.
Flexibility
Whether you need to pay staff, top up your inventory, boost your marketing or upgrade your equipment, you decide where the funds go. There are no limits on how you use the funds.
Maintain Crypto Exposure
If you believe in the long-term value of your crypto, Geddes helps you stay invested. You won’t need to sell your assets to access cash, which is a big deal if you’re thinking ahead.
Tax Efficiency
Often, borrowing doesn’t count as a taxable event. That’s a major plus if you’re trying to avoid triggering capital gains tax. Of course, always speak to a qualified tax advisor to understand your specific situation.
Lower Interest Rates (Potentially)
Depending on your crypto and loan terms, you might find our crypto-backed loans cheaper than an unsecured business loan or a high-interest credit card. That could save your business thousands over time.
So if you want access to cash without selling your crypto, this type of loan could offer the flexibility you need while letting your digital assets keep their future potential. If you’re thinking about crypto-backed loans, you’ve got two options—apply now if you already know it’s for you, or reach out to Geddes if you want to understand it better. We’ll gladly take you through the details.