June 1st, 2023 – Num Stablecoins Loans offer businesses the ability to scale their operations effectively. Num Finance provides a powerful solution that bridges the gap between sales and payment arrival, enabling businesses to achieve uninterrupted growth and enhanced financial flexibility.
Collateralized Loans with Num-S
Num-S loans offer users the opportunity to deposit their cryptocurrencies as collateral with Num Finance, creating an available balance to borrow Num-S tokens. This mechanism, known as crypto-backed loans, functions similarly to other stablecoins in the market, such as DAI (from Maker Dao). In a collateralized loan, the user issuing Num-S must entrust one or more of the cryptocurrencies accepted as collateral by Num Finance, which are held under Num Finance’s custody as a guarantee.
Once the user decides to take a loan, the corresponding Num-S tokens are issued, providing the necessary liquidity. Conversely, when the user repays the loan, the returned Num-S tokens are withdrawn from circulation, and the user can retrieve their collateral. This mechanism ensures the stability and integrity of the Num-S ecosystem, providing users with a reliable and transparent borrowing experience.
Empowering Business Expansion
Now, let’s explore a specific use case that showcases the remarkable benefits of Num-S Loans for businesses. Imagine a commerce scenario where a sale has been made, but the payment is set to arrive in 15 days. However, the commerce faces an urgent need to restock inventory to seize an opportunity for growth. In such a situation, waiting for the payment to arrive could hinder business operations and expose them to potential risks, such as inflation or devaluation; common problems in Latin American countries or emerging economies.
With Num-S Loans, businesses have a powerful solution at their disposal. By offering their cryptocurrencies as collateral, they can swiftly obtain a Loan of Num Stablecoins, leveraging the available balance generated by their deposited collateral. The borrowed Num-S tokens can then be seamlessly exchanged for the corresponding fiat currency at a 1:1 ratio, enabling the commerce to promptly repurchase the required inventory. This streamlined process ensures uninterrupted business operations and eliminates the risks associated with delayed payments. An innovative and widely accessible financial tool.
Enhanced Payment Convenience
In addition to facilitating liquidity, Num-S tokens provide an extra advantage to businesses. Holding Num-S tokens grants them the convenience of making effortless payments using the crypto cards offered by Num Finance’s trusted partners. This feature empowers businesses to conduct transactions seamlessly, offering a flexible and efficient payment solution.
Num Stablecoins Loans unlock a world of possibilities for businesses, providing them with accessible liquidity and enabling expansion in the face of payment delays. Powered by the Num Network, businesses can bridge the gap between sales and payment arrival, mitigating risks and seizing growth opportunities. Num Finance’s commitment to revolutionizing decentralized finance with innovative solutions like Num-S loans sets the stage for a future where businesses can thrive and scale their operations confidently.