Disclaimer: This article does not constitute financial advice and Enness do not give advice or recommendations on securities or crypto backing financing. We recommend seeking the advice of a wealth manager or professional adviser before investing in digital currencies.
Enness Global has launched a new dedicated crypto finance broker solution for high-net-worth international individuals that can raise loans in excess of $500,000 secured against crypto assets.
Through its access to a global network of 24 global lenders, Enness will offer clients the latest in crypto-financing sources from a growing selection of unique crypto loan programs that can be tailored according to an individual’s requirements.
As with any type of finance, raising funds for your business or creating liquidity secured against your portfolio requires specialist advice. This is due to the lengthy process of finding the right lender while navigating regulations and negotiating the right terms in order to finalise a transaction as efficiently as possible. If not carried out with required due diligence, such deals can lead to complications, false starts and needless frustration – not to mention sub-optimal lending terms.
This is where crypto finance can make the loan process much simpler and faster.
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Through decentralised smart contracts and blockchain technology, crypto allows for instant loans, quicker valuations, and immediate transfers.
However, due to the ever-evolving nature of crypto, there is also the need for professional advice and guidance from regulated and experienced advisers with genuine knowledge of the digital-asset space. This is due to several reasons:
- The high number of lenders entering the space. Lenders vary from major US-listed platforms, to small European credit funds and Swiss private banks – each one unique with their own risks and terms and conditions – which, while they may work for some clients, they may be completely wrong for others.
- Price variations from lender to lender. An on-chain lender may be speedier and convenient, but with further thought and negotiation, another lender could offer significantly cheaper terms in a custody package that suits you better. At the moment, crypto lending is limited to short-term loans – zero to three years – and interest rates can be significantly steep.
- Asset and platform security. Lenders require digital custody of the asset – the crypto is moved to one of their wallets for the duration of the loan. The coins can be in hot or cold wallets and the assets may be rehypothecated or not by the lender whilst they have custody – which is all dictated by the loan agreement.
- Not all crypto is made the same. Some clients have high-value coins such as Bitcoin, Ethereum, or stablecoins such as Tether – but others are not in the same position. Your crypto may also be locked up in a staking package earning interest or simply in cold storage where you may want to keep it that way. Therefore, it’s important to find a lender who can be flexible without disrupting your requirements.
- Crypto unpredictability. With the risk of high volatility and punitive margin call limits, choosing the right platform for your loan is absolutely essential. The FTX and Celsius fallouts are previous examples of how mismanaged investment platforms can lead to loss and heartache.
- Security and privacy. Secure transactions with trusted parties in a sector where regulation changes rapidly remain paramount – along with privacy, discretion and independent advice.
- Tax jurisdictions and legal advice. Last but not least, specialist advisers may need to be drafted in for local and international tax compliance, or for particular situations such as purchasing international real estate.
Enness Global’s specialist advisers are fully regulated and follow the same process for crypto loans as they would for traditional loan applications. To guide clients every step of the way and to ensure transparency, both the benefits and the risks of crypto financing are explained before Enness secures a transaction through the most secure and efficient methods.
Working exclusively on the borrower’s behalf, Enness offers a full end-to-end service for high-net-worth individuals raising loans between $500,000 and $100million.
With this latest crypto-brokering service, Enness Global is set to lead the digital-asset space by providing high-net-worth clients with access to the latest in advanced crypto-finance solutions.
Get in touch today to find out more.
Enness does not give advice on Securities Backed Lending or investments (or Luxury Asset Financing), and lender introductions are unregulated. This guide is for information and illustrative purposes only and nothing contain within should be construed as advice or a recommendation and is not an invitation to buy or sell securities.
Islay Robinson, a founder of Enness, is widely regarded as one of the UK's leading mortgage brokers. He has been instrumental in delivering some of the most complex and high value mortgages in the UK.
