Loans and Empowerment

Hi, I’m Nora, Pinnora’s animated guide.

In this video, you’ll see two ways to borrow with Pinnora.

First, a loan against something you already hold.

You’ll request one, and then repay it.

Then Empowerment, which offers working capital to registered businesses.

We’ll look at the facilities, and how to apply.

To find Loans, tap the + button.

Then tap “Programs”, and then “Loans”.

A loan lets you borrow US dollars against something you hold, without selling it.

At the top, you can see how much you could borrow, based on what you hold.

Whatever you borrow against is locked as collateral,

until the loan is repaid in full.

Read the notes under “Before you borrow”.

They explain the interest, and what happens if prices fall.

Under “New loan”, tap “Collateral”,

and choose what to borrow against. Here,

Alex chooses bitcoin.

The line under the box shows how much of it you hold, and what it’s worth.

Next, choose the loan to value: how much you borrow,

compared with what your collateral is worth.

You can choose 25, 50 or 65 per cent.

The line below shows how much you can borrow at each.

A higher loan to value lets you borrow more,

but it brings you closer to liquidation.

Alex stays at 25 per cent.

Now type the amount, in US dollars. Alex borrows $60.

The summary shows the collateral that will be locked,

the interest rate, and the interest for each day.

Interest is simple. It’s charged on what you borrow,

and you pay it when you repay.

Check the liquidation price. If bitcoin falls below it,

Pinnora sells enough of your collateral to cover what you owe.

When you’re happy, tap “Request loan”.

The money goes straight to your funding wallet,

and your new loan appears under “Your loans”.

Once you have a loan, the panel at the top shows what you owe, your collateral,

and the loan’s health.

Each loan has its own card. It shows the interest so far,

the total to repay, and a health label.

Tap “Details” to see everything about the loan.

The loan to value and the liquidation price are worked out as they stand now.

They change as prices move, and as interest builds up.

When you’re ready, tap “Repay”.

There’s no penalty for repaying early.

Pinnora works out the exact amount:

what you borrowed, plus the interest so far.

It also shows where the money comes from.

The amount is held for a minute, while you confirm.

Tap the button to repay. Your collateral is released,

back to your trading account.

Now for Empowerment. Tap the + button, then “Programs”,

then “Empowerment”.

Empowerment offers working capital to registered businesses, at a fixed rate.

You need a verified identity to apply.

Once you’re verified, the page says you’re eligible.

Each facility shows the amounts it covers,

and its yearly rate, called the APR.

It also shows how many months you can repay over,

and what it asks of your business.

The notes under “How the facility works” explain how decisions and repayments work.

Choose a facility, and tap “Apply”.

Alex applies for a Micro facility,

for a small studio.

Enter your registered business name, your sector,

how many years you’ve traded, and your annual revenue.

Next, the amount you’d like, and how long you’d like to repay it over.

Alex asks for $10.000, over 12 months.

Pinnora lends up to twice your annual revenue.

Then say briefly what the money is for.

Before you submit, check the indicative monthly repayment,

and the total you’ll repay.

Tick to confirm you’re authorised to borrow for the business,

and that you accept the facility terms.

Then tap “Submit application”.

Your application appears under “Your applications”, marked “In review”.

While it’s in review, that facility says “In review” instead of “Apply”.

You can have one application in review for each facility.

You’ll get a notification when it’s been decided.

You’ll find it under the bell.

If it’s approved, open Empowerment.

A “Draw down” button appears on your application.

Tap it, and the money goes to your funding wallet.

Then you repay in fixed monthly instalments.

The card shows the next payment,

and what’s still outstanding.

A few things to keep in mind.

Keep an eye on your loan’s health.

If the price of your collateral falls,

your loan to value goes up, and you get closer to liquidation.

If new loans are ever paused, the Loans page says so.

Any loan you already have carries on,

and you can repay it at any time.

And borrow only what you’re comfortable repaying.

Now you know how to borrow with Pinnora.

Choose your collateral, and a loan to value.

Check the liquidation price before you request.

Repay at any time, with no penalty for repaying early.

Once you’re verified, your business can apply for an Empowerment facility.

And if it’s approved, you draw it down to your funding wallet.

Need help? Chat with us in the app,

or e-mail helpdesk@mypinnora.com.

Thanks for watching.