SALT Lending says Bitcoin loans are paying for tuition and payroll, not just trades

Bitcoin holders have long faced an awkward choice when real-world bills show up: sell the coins or find the cash somewhere else. SALT Lending says a growing number of its borrowers are picking a third option.

In its latest report, the Denver-area lender says customers are increasingly using Bitcoin-backed loans for everyday financial needs. Those include tuition payments, working capital for businesses, home purchases and debt consolidation.

A borrower posts Bitcoin as collateral, receives cash, and gets the coins back once the loan is repaid. Borrowers get liquidity without selling, which means they keep ownership of the Bitcoin and any potential appreciation that comes with it.

SALT offers fixed-rate terms of one, three or five years, aimed at both personal and business customers. Pricing depends on how much a borrower takes out relative to the value of the collateral, a ratio known as loan-to-value, or LTV.

At the conservative end, the company says APRs start at 7.49% for a one-year loan at a 30% LTV. Push the ratio up and the price follows. SALT lists a top APR of 10.50% for loans at a 70% LTV.

There are no credit checks and no income verification. Once approved, funding typically lands within 24 to 48 business hours, according to the company.