Rarely is a business so flush with cash that it can forgo all forms of financing. Whether your business is just getting started or is well-established, you’ll likely need to seek out some form of financing at some point. In traditional finance, credit scores are typically used to determine whether loans should be issued to borrowers and at what price.
Credit scores, however, are mired in controversy. They’re often inaccurate, and they don’t take into account a business’s full financial picture. Moreover, they’re an exclusionary system that locks out many would-be borrowers who don’t have access to traditional forms of credit.
Instead of tedious bank loans, on-chain financing and Web3 accounting tools like Bulla Network allow for a business to put its request for financing directly onto the blockchain. This enables on-chain crowdfunding, where a business can solicit capital from the community directly.
