The Solution

Web3 offers decentralized funding without upfront costs or strict requirements.

Micro-companies often accept higher interest rates for easier access to capital, bypassing the traditional hurdles posed by banks.

Satin Finance offers investors a fixed APY of 14% on their USDC deposits, which are locked for 30 days at a time and auto-compound daily if left untouched. Rewards are also distributed in USDC.

Given this APY, borrowers are financed based on their ability to repay interest. The Maximum Loan Amount (MLA) is calculated using their trailing twelve-month (TTM) net profit, provided they pass our underwriting screening. The loan is capped at a 0.35x multiple of the MLA.

This multiple accounts for risks such as:

• Early repayment requests,

• Business slowdowns due to market downturns,

• Rapidly changing monetary policies.

For example, with an annual net income of $52,000 and an interest rate of 14%, a company could theoretically accept up to $371,429 in capital investment (locked capital). However, Satin Finance caps this amount at $130,000, higher than the industry standard EBITDA * 1.5x, with a premium accounting for higher yields and associated risks.