Access Credit On Goldfinch By Leveraging On-Chain Cashflows
Tl;dr
- Goldfinch protocol is exploring lending to real-world (i.e. non-crypto trading) businesses with existing cashflows on-chain or with the willingness to integrate their cashflows on-chain. If you want to be on the cutting edge, reach out here.
- With on-chain cashflows, we have the ability to create innovative new lending products uniquely enabled by crypto.
- We believe transparent, easily verifiable on-chain cashflows can level the playing field of raising debt between big and small companies, and we want to be at the forefront of making that happen.
How May On-Chain Cashflows Benefit Your Business?
We know that raising debt for your business is often not possible or takes anywhere from 6 to 12 months. We see how burdensome it is to put together financial diligence documents for your lenders and how hard it can be for them to verify those documents.
On-chain cashflows and the products we can build on top of them can help automate this process. Publicly traded corporations can afford the significant expense of employing numerous accountants and finance professionals to produce reliable financial reports. It’s worth it because having credible financial information makes the process of raising funds considerably more straightforward. On-chain cashflows even the playing field. Brian Armstrong once marveled, “being public meant we raised $3 billion, and I never took a single meeting.”
Having your cashflows on-chain means providing the same, if not better, access to credible financial information for your lenders. It makes it painless for potential lenders to understand your company’s financial health, as all they need to do is look at the on-chain data. Auditors, quarterly reports, and other activities that increase the transaction costs of lending become obviated by having a single, real-time, un-censorable source of truth.
By providing that level of transparency, while, of course, respecting your business’ privacy, not only do we think we can provide access to financing in case you don’t have access to it today, but better yet, we can build innovative new financial products uniquely for you that don’t yet exist. Imagine interest that gets paid minute-by-minute as you generate revenue, frictionless risk tranching for your lenders, and automated waterfall payments pulling everything together.
We’re energized by this future and want to do our part in making it a reality.
How Do You Know if Your Business is a Good Fit?
Goldfinch is looking to do early pilots with businesses that:
- Produce real-world value.
- Have either some cashflows on-chain, or
- Are willing to move some cashflows on-chain (i.e., with a Circle USDC integration) to access financing.
As we are early in this next evolution of financial markets, we are flexible in the lending solution we can offer and make it adaptable to your business needs.
Some examples that we think may be interesting include:
- Smooth cash flow cycles for international remittances and cross-border payments by funding the settlement time period.
- Providing Service DAOs capital to expand their offerings.
- Working capital financing for businesses/DAOs that don’t currently have access to it.
- Liquidity for on-chain token vesting schedules for contributors that need it.
- Smoothing out settlement time for cross-chain asset flows.
- Lending against Sablier or Superfluid commitments.
This list is by no means exhaustive! We are incredibly open to learning about different business models and seeing how we can help.
Want To Be a Pilot Partner?
If your business is a fit, and you want to participate in the future of finance, fill out this form here, and we will be in touch!
We look forward to helping build out the on-chain economy and create a more equitable financial world with the power of DeFi.
