Ripple announced the launch of Line of Credit, its newest product on RippleNet that will allow customers utilizing its On-Demand-Liquidity to borrow capital on demand and use it for cross-border payments with XRP.
According to Ripple, Line of Credit will help many growing companies in the small to medium size categories like fintech companies,-which usually have limited access to working capital- to scale their operations quickly and efficiently. The availed resources and capital will in turn allow users to compete with bigger and better-established businesses.
“Ripple launched Line Of Credit, a new better service on RippleNet that allows customers using ON-Demand-Liquidity to source capital on demand to initiate cross-border payments at a scale using the digital asset XRP.”
One Simple Credit Arrangement for Every Market
A line of credit establishes a borrowing limit that can be accessed and used by the borrower at any time, provided they don’t exceed the borrowing limit and make their minimum payments on time.
The availability of such an arrangement for payments anywhere in the world will save Ripple users from the burden of establishing an agreement with different providers for each destination of funds.
Ripple stated that users will no longer have to contend with individual arrangements, which sometimes require additional overhead managements, leading to a slow, cumbersome, and inefficient money transfer process.
“Ripple’s Line of Credit solves this problem for our customers by providing upfront access to capital for every market through one simple credit arrangement-simplifying access to financial solutions that accelerate business performance and scale.”
Users already using the ODL service on RippleNet can now buy XRP on credit from Ripple, at a single charge on the borrowed amount, and receive approval for funds faster than through traditional financial institutions.
“RippleNet customers simply take advantage of one simple XRP arrangement everywhere that ODL is available regardless of sending destination of fiat currency and costs a lot less than most other available credit options.”
Fostering Business Growth and Affordable Money Transfer Services
Ripple also added that Line of Credit’s pilot program has been tested by RippleNet customers specialized in cross-border money transfers. So far, the customers have started to reap benefits such as affordable global money transfers.
“It also opens up opportunities to use the capital freed from pre-funded accounts and further invest in their business to enter new markets and reach new customers.”
RippleNet operates across more than 55 countries, with over 95 available fiat currency pairs and connects hundreds of financial institutions around the world through a single platform to make moving money faster, cheaper, and more reliable.
“Line of credit is the latest step in Ripple’s vision to enable the internet of value and break down the barriers in finance.”