What is a domain name loan? Can a domain name be used as collateral for a loan?
Release time: 2019-06-21 16:00:04 Source: Internet Author: zac Clicks: 3602
What is a domain name loan? Can a domain name be used as collateral for a loan? Many people know that domain names are valuable, but domain names are, after all, a virtual product on the Internet. Financiers have paid attention to this, and now domain names can actually be used for domain name loans! As long as the domain name you hold is valued, you can borrow the corresponding funds, and the domain name becomes a kind of wealth invisibly!

Domain name mortgage loan is a form of loan that uses Internet domain names as collateral. Domain name loans are a win-win initiative. I believe more and more investors will benefit from it, and it will also contribute to the healthier development of the domain name market!

"Internet +" has become a sign of the times. With the rapid development of the market, Internet finance is booming, and there is a similar product in the domain name investment industry, that is, domain name loans. Digital intangible assets are increasingly becoming an important component of our wealth; domain names are the control nodes of digital Internet assets and are high-quality digital assets.

The introduction of domain name loans makes domain names more valuable in the financial field. It helps domain name holders solve the problem of financing difficulties to the greatest extent and also ensures the financial security of both parties in domain name transactions. The domain name loan platform evaluates the market value of the domain name, makes a reasonable value credit for the borrower's domain name (generally 30% to 50% of the market value), and appears in front of investors in a state that best matches the market value. The borrower uses the domain name as an asset pledge and transfers the ownership of the domain name to the domain name loan platform, and the borrower raises funds through the platform's bidding model. During the borrower's borrowing period, the platform only charges a small management fee to fully meet the borrower's borrowing needs.

Let’s talk about a case: a domain name investor owns a high-end domain name. Note that it is a high-end hard currency domain name (that is, a high-quality domain name), which means that it is a high-quality digital asset. If the market value of this domain name is 500,000 , and the borrower wants to use the loan to revitalize funds, then he will mortgage the domain name on the Golden Shovel Domain Name Loan Platform, and then the domain name loan platform will evaluate the market value of the domain name, detect risks, and give 250,000 . This domain name investor can issue a loan of 200,000 to 250,000 as collateral, and pay it back in installments. The general annualized interest rate is 12% to 26%, which is relatively reasonable. of. So what if the borrower fails to repay the money overdue? If the borrower does not repay the money, in the worst case scenario, the domain name loan platform will put the mortgaged domain name at a public auction, following the principle of refunding more and making up less.

Of course, this situation generally does not occur, and domain name owners will cherish their domain names very much, and no one will be willing to sell the domain name at a low price. Currently, the maximum loan period controlled by each domain name loan platform is 6 months, and the short-term fluctuations are very small. The advantage of a domain name loan is that it can turn around the domain name owner's funds in a timely manner, expand investment and healthy investment, and enhance the value of the entire domain name investment market. The disadvantage is that a large number of domain name investors currently have the problem of revolving loans. This is not a long-term solution, but will increase stress and turn into a vicious cycle. At the same time, we also remind the majority of domain name investors that any investment has risks. Do not unscrupulously enlarge the capital pool and expand loan capabilities. Malignant loans are very dangerous.

Okay, today the editor of Juming.com will tell you this. Regarding domain name mortgage loans, in fact, each platform may be different. If you want to know the value of your domain name, you can go to Juming.com to query the domain name. Let’s see how much it’s worth!