How To Get a Crypto Business Loan in 2026: Everything You Need To Know

If your business holds bitcoin or other crypto, you might be wondering: how do you access cash without selling an asset you want to keep?

One answer is: with a crypto business loan. These let you use bitcoin or other crypto as collateral to borrow fiat, while keeping ownership of your assets. If you’re managing taxes, cash flow gaps, operating costs, or time-sensitive opportunities, a crypto loan could be an alternative to traditional financing.

This guide explains how crypto business loans work in 2026, how they differ from bank loans, the risks to understand upfront, and how to evaluate lenders so you know exactly what you’re signing up for.

What is a crypto business loan?

A crypto business loan lets you borrow cash by using cryptocurrency as collateral instead of revenue, property, or a credit score. The lender is underwriting the value of your crypto, not your business performance.

These loans are over-collateralised by design, meaning you put up more value than you borrow. If prices fall, you may need to add collateral or repay part of the loan to avoid liquidation.  

Businesses tend to use these loans for short-term needs: covering taxes, smoothing cash flow, funding operations, or acting quickly when timing matters.  

Read more: How to earn interest on crypto, the definitive guide

How crypto business loans work

Getting a crypto business loan is simpler than dealing with a bank, but there are still some moving parts to understand.

You start by choosing a lender. What matters most here is transparency, which comes from clear loan-to-value (LTV) thresholds, defined liquidation rules, and straightforward custody. Some platforms support many assets. Others, like Ledn, focus on bitcoin only.

Reputable lenders will require basic KYC and business verification. That’s standard in 2026 and a signal that the platform operates within regulatory expectations.

Next, you prepare your collateral. You should have the ability to transfer the collateral and maintain clear records for accounting, audit, and tax reporting. Once collateral is transferred and verified, you review the loan terms: interest rate, LTV, liquidation level, and repayment flexibility.

If everything checks out, funds are usually released within hours or by the next business day.

How to qualify for a crypto business loan

With crypto business loans, the key factor is your collateral.

Lenders look at what asset you’re using, how liquid it is, how volatile it is, and how much you’re trying to borrow against it. Some platforms may ask for basic business information. Others may have jurisdiction-specific requirements.

The higher the LTV you request, the more risk you’re taking on. That usually means higher interest and less room for error if prices move against you.

Read more: What can you use a bitcoin loan for?

How repayments work on a crypto business loan

Crypto business loans are usually more flexible than bank loans, but terms still vary.

Most platforms let you repay early without penalties. Some allow partial repayments to reduce risk if markets move against you. Interest is typically charged over time and may be paid monthly or settled when the loan closes.

Before borrowing, check whether interest is fixed or variable, whether it compounds, whether there are origination or processing fees, and whether liquidation fees apply.

How crypto loans differ from traditional business loans

Traditional business loans are built around cash flow, credit history, and paperwork. Crypto loans are built around assets.

Approval is faster because there’s less underwriting. Access is broader because you’re not tied to local banks. Funding may not trigger a taxable event because you’re borrowing, not selling (but tax treatment varies and liquidation or sale of collateral may trigger taxes, so it’s best to check with a qualified tax advisor).

The trade-off is volatility. Banks don’t liquidate your office building overnight, but crypto lenders can liquidate collateral if prices drop and you don’t act in time. If collateral is sold to repay the loan, that may be a taxable disposition.

What drives interest rates for crypto business loans?

Crypto loan rates vary widely, but the biggest driver is LTV. Lower LTVs usually mean lower rates because the lender is holding more collateral relative to the loan.

Rates can change over time and aren’t guaranteed, so when you’re comparing platforms, look beyond the headline APR. You need to know liquidation thresholds, fees, and how much control you have if markets move quickly.

How to evaluate crypto business loan lenders

There are many crypto lenders out there, but they’re not all equal. The differences show up in how your collateral is handled, how risk is managed, and how much control you keep once the loan is live.

Start with custody. You want to know where your bitcoin sits and what the lender is allowed to do with it. Some platforms keep collateral fully custodied and segregated, while others reuse it. Proof of reserves or third-party attestations help clarify whether client assets are fully backed.

Next comes risk management. LTV limits, margin call levels, and liquidation thresholds should be clear from day one. The earlier you’re notified when prices move, the more room you have to respond. Features like alerts or partial repayments can make a difference if markets turn fast.

Finally, look past the headline rate. Interest can change and fees aren’t always obvious. Repayment rules will impact cash flow and flexibility over time. These details determine how predictable the loan feels once it’s in motion, not just how attractive it looks on day one.

Read more: Best bitcoin-backed loan rates in January 2026 (compare terms & LTV)

The upsides and the risks of crypto business loans

The upsides are quick access to capital without selling your crypto, avoiding lengthy credit checks, and keeping exposure to price appreciation and can use funds however your business needs.

The risk is that crypto prices can move fast. If your collateral drops sharply, you could face margin calls or liquidation. Regulations differ by country, and platform reputability makes a big difference.

What actually happens if bitcoin’s price falls while your loan is open?

Crypto business loans come with a buffer. You put up more bitcoin than the amount you borrow so the lender has protection if prices move.

If bitcoin’s price falls, the value of your collateral drops while your loan stays the same. That pushes your LTV higher. When it reaches certain levels, the lender may step in and ask you to either add more bitcoin or repay part of the loan. This is called a margin call.

If you don’t act and prices keep falling, the lender can sell some or all of your bitcoin to close the loan and recover the funds. In fast markets, that can happen quickly. That’s why a lender sets LTV thresholds, sends alerts, and handles liquidation matters.

Different platforms manage this risk in different ways. At Ledn, loans come with clearly defined LTV levels, early alerts, and tools designed to help you stay ahead of downside risk rather than react at the last minute.

When a crypto business loan makes sense

These loans work best if your business already holds crypto, you need short-term liquidity, and you understand how to manage LTV risk.  

When a crypto business loan may not be the right choice

Crypto business loans aren’t always the right solution. If your business can’t actively monitor price movements, can’t add collateral quickly, or needs long-term fixed-rate financing, they probably aren’t the best option for you. They also carry risk if your business can’t tolerate volatility or forced liquidation.

Why businesses use Ledn for bitcoin loans

How lenders handle custody, risk controls, and liquidation varies widely. That’s where provider choice matters.

Ledn focuses on secure bitcoin-backed loans. Your bitcoin stays custodied and is never lent out for interest. Proof of reserves lets you verify client assets, and loan terms are clear from the start. There are no credit checks, no monthly payments, and no prepayment penalties. Funding can happen quickly once collateral is posted, subject to eligibility and jurisdiction.

Ledn also offers B2X loans, which combine a bitcoin-backed loan with the purchase of additional bitcoin as part of the collateral. Again, terms, rates, and availability depend on eligibility and jurisdiction.

Learn more about Ledn’s bitcoin-backed loans

FAQs on crypto business loans in 2026

What is a crypto business loan?

A crypto business loan lets you borrow cash using bitcoin or other crypto as collateral. You keep ownership of your assets instead of selling them.

How fast can you get a crypto business loan?

Many lenders release funds within hours or by the next business day once collateral is posted and verified.

Do crypto business loans require a credit check?

Often no. These loans are typically underwritten against your crypto collateral, not your credit score or business revenue.

What happens if bitcoin’s price falls during the loan?

If prices fall, your loan-to-value ratio rises. You may need to add collateral or repay part of the loan. If no action is taken, the lender can liquidate collateral.

How are interest rates set on crypto business loans?

Rates mainly depend on loan-to-value. Lower LTVs usually mean lower rates because the loan is more heavily collateralised.

How does Ledn fit into crypto business lending?

Ledn’s bitcoin-backed loans have clear LTV thresholds, defined liquidation rules, and proof of reserves. Bitcoin used as collateral stays custodied and isn’t lent out for interest. Availability, terms, and rates depend on eligibility and jurisdiction.

Disclaimer

This article is sponsored by 21 Technologies Inc. and/or its subsidiaries (“Ledn”) and is for general information, discussion, or educational purposes only and is not to be construed or relied upon as constituting legal, financial, investment, accounting, tax, estate-planning, or other professional advice or recommendation. Please read Ledn’s full Risk Disclosure Statement and Disclaimers.

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