Welcome to Joltify
  • Introduction To JOLTIFY
  • Real World Asset Lending
    • Background
    • Business Model In JOLTIFY
      • Tokenize Document To NFTs
      • NFT Ownership Transfer
      • Token Economics
    • Utilization of JOLTIFY In Different lending Environments
    • Project-Based Lending
      • Use Case: A Solar Farm Financed By JOLTIFY
    • Investment Pool Processes and Rules
  • Asset-Based Lending
    • A Commercial Development Asset-Based Loan Within The JOLTIFY network
  • Cash Flow-Based Lending
    • Cash Flow-Based Loan In JOLTIFY To Help A Car Company Grow Its Business
  • Digital Asset Lending
    • Backgound
    • Joltify Digital Asset Lending
    • Market
    • Liquidation
  • Jolt Buy-Back And Burn
    • Jolt Buy-Back And Burn
  • Joltify Techs
    • JOLTIFY Chain Techs
      • Validator Election & Punishment
      • JOLTIFY Chain Bridge
    • Development on Joltify EVM
      • Configuration
      • Token Conversion
      • Development Tutorial
    • Nodes and Validators
      • Requirements
      • Joltify Installer
      • Run a Fullnode
      • Become a Validator
    • Endpoints
    • Connection
  • Joltify Testnet
    • Get Ready
    • Swap & Digital Lending
    • JOLT Buyback-Burn
    • RWA Lending
      • Role Introduction
      • Investor Guideline
      • Notation Explanation
      • Investing Timeline
    • Cross-Chain Bridge
    • Joltify IBC Transfers
  • Joltify Point System
    • Introduction
    • Invitation Mechanism
    • Basic Missions
    • Testnet Missions
    • Mainnet Missions (Coming soon)
    • Discord Role Claim
    • Partner Missions (Coming soon)
  • Term of Use
    • TERMS AND CONDITIONS OF USE FOR BORROWERS AND ISSUERS
    • WEBSITE, JOLTIFY PROTOCOL AND JOLTIFY CHAIN TERMS AND CONDITIONS OF USE
    • PRIVACY POLICY
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Cash Flow-Based Lending

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Last updated 3 years ago

This considers the borrower’s present cash flows, the loan amount is based on the capacity of the borrower to repay the loan. The repayment schedule is based on the borrower’s timing of cash flows, collateral is not the primary consideration. Some examples of this are micro-enterprise loans, salary loans, business loans.

Advantages: Default due to fund diversion minimized, loan size, terms and repayment based on borrower’s cash flow, best suited for short-term, working capital loans.

Disadvantages: Loan size may be conservative as it is relative to repayment capacity, this could work against lower-income earners or people who may be asset rich, without significant cash-flow revenue.

Above, we can see why Joltify can be utilized for businesses to have more liquidity at hand, meaning that they can better facilitate their creditors and debtors. We have used an example of a 60-day payment cycle above.