🧐 Bank Loan or Security Token Offering — What fundraising type would better suit your business?
📊 Raising money for the business is one of the most challenging milestones companies try to reach. Bank loans are a common form of debt financing that a lot of businesses go for; however, it has a number of significant disadvantages.
💡 One of the main issues with loans is that not all the projects are eligible for them. For example, new projects, newly incorporated special purpose vehicles, or the ones without hard assets that can serve as collateral. And, even if they are eligible, the interest rates may be too high and make the business less attractive overall because the cost of capital becomes too high.
⚡️ Security Token Offering may be a much better alternative to finance your business. STO is a form of investment crowdfunding driven by emerging technologies. Security tokens grant owners the same rights that the financial assets would grant in the traditional market.
Key STO advantages are:
🔸 No collateral is needed
🔸 No interest rates
🔸 Simple and automated
🔸 No middleman involved
🔸 No limit on the fundraising amount
👉 Check a detailed comparison of Bank loans and STO in the Stobox infographic.
🔎 More than 30 clients have already trusted Stobox with STOs for their projects. Altogether, they are raising more than $300 million. Talk to our expert to find out how STO could benefit your business — https://stobox.io/digital-assets-consulting
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