Financing Through Tokenization: A Use Case to Save Small and Medium-Sized Enterprises

The Financial Struggles of SMEs

Small and medium-sized enterprises (SMEs) are the backbone of the global economy, driving innovation, employment, and economic growth. However, accessing capital remains one of their greatest challenges. Traditional financing options—such as bank loans and venture capital—often come with high interest rates, strict collateral requirements, or equity dilution that limits the control founders have over their companies.

ONINO is changing the game by offering SMEs an alternative path: financing through tokenization. By issuing tokenized debt or tokenized equity, businesses can raise capital in a way that is more flexible, accessible, and cost-efficient than conventional funding sources.

The Problem: Limited Access to Capital for SMEs

1. Strict Lending Requirements

Banks often require SMEs to provide collateral, show long-term profitability, or maintain high credit scores—barriers that many small businesses struggle to meet.

2. High Interest Rates & Fees

Traditional loans can burden SMEs with high interest rates and repayment terms that stifle growth and innovation.

3. Equity Dilution

Venture capital and private equity investments often demand significant ownership stakes, reducing the control founders have over their businesses.

4. Limited Investor Reach

SMEs typically lack access to a global network of investors, limiting their ability to raise sufficient capital.

The Solution: Tokenized Financing with ONINO

ONINO’s blockchain-based tokenization platform provides SMEs with an innovative alternative to traditional financing. Through tokenized debt and equity, businesses can raise capital efficiently while maintaining control and flexibility over their financial strategies.

1. Tokenized Debt: A New Era of Business Loans

Tokenized debt allows SMEs to issue digital bonds or loan agreements on the blockchain, offering investors an opportunity to lend directly to the business. Benefits include:

• Lower Costs: By cutting out intermediaries, tokenized debt can offer lower interest rates than traditional bank loans.
• More Flexibility: Businesses can structure repayment terms that suit their needs.
• Access to a Global Investor Base: Tokenized debt can be sold to investors worldwide, providing greater liquidity and investment opportunities.

2. Tokenized Equity: Raising Funds Without Losing Control

Instead of selling large ownership stakes to venture capitalists, SMEs can issue tokenized equity, allowing fractional ownership in a regulated and transparent way.

• Fractional Ownership: SMEs can raise capital in smaller increments, attracting a broader investor base.
• Smart Contract Automation: Dividends and governance rights can be programmed into the token, reducing administrative costs.
• Regulatory Compliance: ONINO ensures that all tokenized equity issuances comply with financial regulations, providing investor protection and legal certainty.

Why ONINO? A Secure, Scalable, and Compliant Infrastructure

ONINO’s infrastructure is designed to make tokenization accessible, secure, and compliant:

• End-to-End Tokenization Support: From legal structuring to issuance and secondary market trading, ONINO provides a seamless process.
• Regulatory Compliance: Ensuring adherence to securities laws and investor protection standards.
• Multi-Chain Compatibility: ONINO supports public and private blockchain networks, allowing businesses to choose the best infrastructure for their needs.
• Fractionalization & Liquidity: Enabling SMEs to access investors who prefer smaller, diversified investments.

Tokenization is the Future of SME Financing

SMEs need financing solutions that are more inclusive, cost-effective, and adaptable than traditional banking and venture capital. ONINO’s tokenization platform offers a lifeline for businesses seeking alternative funding sources through tokenized debt and equity.

By leveraging blockchain technology, SMEs can raise capital in a secure, efficient, and globally accessible manner—ushering in a new era of financial empowerment for entrepreneurs.

Are you ready to explore the future of SME financing? Learn more about ONINO’s tokenization solutions today!

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