Credit Coop
  • About Us
    • Introduction
    • Get in Touch
  • ⚙️About Our Products
    • Secured Line of Credit
      • Line of Credit Features (v1)
        • Cash Flow Financing
        • Deploying a Secured Line of Credit
        • Core Lending Functionality
        • Revenue-Based Lending Operations
        • Collateral Operations
        • Credit Events
    • The Spigot
      • Key features of the Spigot
      • Spigot Roles
        • Owner
        • Operator
  • ⚙️User Documentation
    • User Documentation (v1)
    • User Documentation (v2)
  • ⚙️DEVELOPER MATERIAL
    • Introduction
    • Deployed Contracts
    • V1 Developer Material
      • Architecture (v1)
      • Functions and Methods
        • LineOfCredit.sol
        • Oracle.sol
        • Spigot.sol
        • SpigotedLine.sol
        • Escrow.sol
        • EscrowedLine.sol
        • SecuredLine.sol
        • LineFactory.sol
        • Libraries
        • InterestRateCredit.sol
          • Accrued Interest Calculation
          • 'Interest Accrued' contract flow
        • Advanced Jargon
      • Repaying Debt - Function View
      • Valuation Oracle
      • Arbiter Role (v1)
        • liquidate() and declareInsolvent()
        • Spigot related functions
        • enableCollateral()
      • Edge Cases and Risk Situations
      • Security Audits
  • 💼Legal
    • Important Legal Notice
    • Terms of Use
    • Privacy Policy
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  1. About Our Products

Secured Line of Credit

The first instance of debt-based financing issued natively onchain

PreviousGet in TouchNextLine of Credit Features (v1)

Last updated 7 months ago

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The Secured Line of Credit is a credit facility secured by onchain cash flows and/or asset collateral.

Benefits for Borrowers

  • Flexible financing for OpEx and longer term growth initiatives with no fixed repayment schedule

  • On-demand liquidity. Only use what you need, when you need it

  • Leverage future cash flow/revenue (assets you don’t even have yet) to drive growth

  • Syndication - the credit line does not have to be solely in USDC from one lender, it supports multiple assets and multiple lenders for each Secured Line of Credit.

Benefits for Lenders

  • Assess borrower risk and price accordingly via lender-specific interest rates

  • Receive a return on deposited capital even if funds are not drawn down

  • Withdraw deposited capital on-demand if funds aren’t drawn down by a Borrower

  • A Line of Credit is collateralized by the borrower's cash flows via the Spigot to service debt

  • Recourse via priority repayment, programmatically enforced

Not sure what a revolving Line of Credit is? For a basic overview from TradFi, see .

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