SA money lender now accepts NFTs as collateral

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Lamna Financial co-founder Charles Meyerowitz.

South Africa based asset backed lender Lamna Financial claims to be one of the first financial services companies in the world, and the first in Africa, to offer loan advances against non-fungible tokens (NFTs).

The registered credit provider offers short-term asset-backed loans for high net worth individuals.

The company offers fixed interest rates ranging from 36% to 60% annual percentage rate and payment options from three to 24 months.

The financial services company claims that since its inception in 2013, it has disbursed more than R 1 billion to more than 7,500 clients by providing loans using client assets, such as vehicles, watches, jewelry, gold and diamonds, yachts and ships, as collateral.

With the explosive growth of cryptocurrency now opening up a new world of investment opportunities, Lamna Financial claims to have broadened its offerings to allow clients to take out loans in exchange for NFTs, considered an important asset class for Investors.

a TVN is a secure digital file that validates ownership and is stored on the blockchain system, where each NFT can represent a unique digital item, and therefore is not interchangeable.

NFTs can represent digital files such as art, audio, videos, video game elements, and other forms of assets in the physical world. Although the article itself can be copied, the NFT that includes the ownership certification cannot be duplicated.

“Lamna’s entry into the digital space goes beyond simply ‘changing with the times’,” says Lamna co-founder Charles Meyerowitz.

“With the rapid growth of cryptocurrencies, we understand that the purchasing power of our customers has increased, and that includes investing in digital asset classes. We understand that the modern client is not limited to investing in traditional assets, such as physical works of art, motor vehicles or jewelry, and therefore to be a relevant asset-backed lender in the 21st century, we are leading the charge around the world to respond to investors who need to free up liquidity from their assets.

NFTs are increasingly attracting interest from South African businesses, with developments taking place locally, as the blockchain-based crypto craze explodes across the globe.

According to industry insiders, while the trend is still at an early stage at the local level, South African businesses are identifying huge potential in NFTs, which they believe has endless benefits for organizations of all sizes. sectors and for investors.

Once Lamna has verified the unique identity and ownership of an NFT (listed on another platform) and determined the value of the asset, he makes an initial loan offer to the registered owner.

Meyerowitz expects rapid growth in NFTs offered as collateral for short-term loans, with NFTs becoming a substantial part of new business, joining the list of other most exploited assets including sports cars, trucks and jewelry. .

He says many clients find the asset-backed financing route attractive due to the lack of paperwork, speed of service and limited paperwork.

Discussing what sets Lamna apart from its competitors, Meyerowitz points out, “Many entrepreneurs simply need to fill a cash gap and approach us for speed, convenience and transparency, while others value discretion. . Lamna’s high percentage of returning customers underscores the importance of a lender’s trust and credibility.

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