If you’re a regular follower of the news, then you likely have come across more than a few stories about cryptocurrency. This digital-based market is sure to evolve and grow in popularity in the coming months and years and, as a result, you might be wondering if cryptocurrency lending is right for your business needs.

You also might be simply wondering, “What is cryptocurrency lending?”

Unlike traditional stocks, bonds, and mutual funds, cryptocurrency lending offers a number of financing benefits that may appeal to small businesses and startups, including short-term flexibility, low interest rates, and convenience. However, crypto lending platforms also contain elements of risk that are important to understand before you make any sort of digital transaction.

Here, we’ll outline some of the key terms used in the crypto marketplace, and identify how crypto lending differs from traditional financing, including potential pitfalls. If you’re unsure about your options, you may want to consider consulting with an experienced and reliable financing partner like Team Financial Group to learn more about all your financing choices.

Learning Where Crypto Can Take Your Business ​Starts With Understanding the Basics

For all the buzz surrounding crypto, it still can be a confusing world filled with strange names and acronyms. Here’s a quick rundown of common terms that you might come across as you research cryptocurrency lending as a financing option.


A digital or virtual currency (aka “money”) stored, created, and processed by cryptography, making it difficult to counterfeit or duplicate. Crypto assets operate with a decentralized finance structure that allow them to operate outside of many government rules and regulations. Examples include Bitcoin, Ethereum, Dogecoin, Litecoin, and Ripple.


Cryptocurrencies that are backed by more traditional government-issued fiat currencies, such as the U.S. dollar, meaning their prices remain steady. Examples include Tether and Dai.

Digital assets

Digital material and assets that hold some sort of value and are owned by a company. This might include photos, videos, PDFs, logos, illustrations, audio content, even spreadsheets and Microsoft Word documents.


E-lending is similar to a traditional mortgage application process. However, lenders are virtual and do not have a physical branch, office, or location. Communication with crypto loan processors and brokers are conducted via email, phone, or online chat.

Blockchain technology

The technology at the center of most digital currencies facilitates the process of recording transactions and tracking assets with a digital ledger of data that can be duplicated and distributed across a business network.


Financial technology refers to a financial services company that integrates technology into a product or service in order to improve its functionality and speed up delivery to customers. Fintech examples include lending-as-a-service apps, alternative lending, and crowdfunding.

Smart contracts

A term used to describe computer code that automatically executes an agreement and is stored on a blockchain-based platform. Details of the loan amount, agreement, and repayment terms between borrowers and crypto exchanges are directly written into the code.

Distributed ledger technology

A digital system for recording asset transactions with details and information recorded in multiple places at once. Unlike traditional databases used by banks and financial institutions, a distributed ledger is a decentralized network, meaning there is no conventional data storage or administration functionality.

RELATED: A Handy Guide to Equipment Financing Language

The Cryptocurrency Landscape Offers Opportunity — But Also Risk

While blockchain lending might seem like an appealing choice for small businesses, there are a number of potential crypto lending risk factors that borrowers should note compared to more traditional financing options.

Unpredictable values: The volatility of the crypto markets makes it more risky than traditional investing. Take bitcoin, for example. At one point in 2017, a single bitcoin was worth almost $20,000. Then, in 2018, bitcoin value dropped to $3,100, wiping out billions of dollars in the cryptocurrency market. Those kinds of losses resulting from price fluctuations can be devastating to small businesses.

Security concerns: Cybersecurity should be a concern for businesses of any size, especially when it comes to cryptocurrency lending. If you do decide to explore crypto loans, it is important that you put procedures in place to protect yourself from fraud, hacks, and other potential cyberattacks.

Lack of regulation: Lawmakers are starting to put more stringent rules and regulations in place at the state and federal levels, so borrowers will need to be prepared to adjust quickly as crypto lending changes.

Technical knowledge: The crypto marketplace also seems to change by the minute, meaning digital tools need to be consistently established, maintained, and updated. This constantly evolving landscape requires an extensive amount of research and vigilance for crypto loans, which may be a challenge for small businesses with limited resources.

Uncertain future: While cryptocurrency lending provides a number of appealing options and choices for businesses looking for financing flexibility, it still remains a relatively new marketplace. There are a lot of unknowns, meaning there are just as many potentials risk as there are rewards. You could say the old saying, “We don’t know what we don’t know,” definitely still applies.

Team Financial Group Makes Equipment Financing Fast, Flexible, and Easy

While cryptocurrency lending may be an intriguing option for small and midsize businesses looking for new ways to foster growth, a financing partner like Team Financial Group offers significant benefits that blockchain lending cannot provide.

We’ve worked with businesses across dozens of industries and provided financing for companies with a wide range of credit scores and histories. As an independent financing partner, we have more flexibility than a bank, so we treat you as more than just a credit score. Instead, we look at the whole picture of your business, your team, and your annual revenue to find a financing option that works for you.

Additionally, if you’re a vendor, here are just some of the reasons why working with Team Financial Group as your financing partner can benefit your business and your customers:

Still have questions about cryptocurrency lending or any of your potential equipment financing options? Let us know. We can help you learn more so you can understand all your options and make an informed choice for your business.

Partner With Team Financial Group for Your Equipment Financing

At Team Financial Group, we work with clients to identify and customize financing solutions that meet their specific needs. Our commercial and office equipment financing options can improve your business’ cash flow and overall financial health.

If you’re not sure which type of equipment financing option is right for your business, just get in touch with our experts. We’ll talk with you, learn about your company, and come up with a financing strategy that makes sense for you. To discover how your business can get fast, flexible financing today, please complete this brief online application.



Locke, T. (2021, Jan. 9). “Thinking of buying bitcoin? What experts say about big crypto concerns: ‘You have to be mentally prepared.’ ” CNBC. Retrieved from: https://www.cnbc.com/2021/01/09/what-experts-say-about-cryptocurrency-bitcoin-concerns.html 


The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts. 






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