A new lending model is emerging in finance, replacing fixed interest with profit-sharing. ASX Limited integrates this system in real estate.
What Are Profit-Linked Return Loans?
Profit-linked return loans replace fixed interest with a share of borrower profits. When financing a real estate project, instead of a fixed 5% interest, you receive a portion of the project's earnings. This allows borrowers to avoid a fixed debt burden and creditors to share in project success.
How ASX Limited Is Using This Model
ASX Limited uses profit-linked return loans to fund profitable real estate projects, carefully selecting those with strong potential. Instead of fixed interest, ASX receives a profit share, while ASX NFT holders get repayment shares as ASX tokens.
Why This Approach Stands Out
ASX's model offers high returns as creditors benefit from project success. No fixed payments also allow borrowers to reinvest in their projects, fostering long-term growth.
ASX Limited's use of profit-linked loans offers a new investment approach, merging real-world benefits with blockchain technology advantages.
