The Problem of Debt Financing and Accepting Volatile Property as Payment

The reality is that many companies have accepted loans to cover capital expenses, payroll, and other operational costs. What happens if a company in debt to a bank, or in some cases an investor, can’t make enough sales to cover their liability? In some cases this business will default on their loan and as a result cause irreparable harm to their future business viability, profitability, and credit. In most cases, to withhold or hide assets is equivalent to fraud, or at very least unethical. In a similar scenario, to accept something as payment for services that does not easily convert into a format that is able to satisfy creditors might be problematic and in some cases, illegal.

So, can you accept Bitcoins at your business? The answer is always yes, but there may be some caveats. If your business is not able to hold Bitcoins as an asset due to financing or some other reason, you will need to use a service that assumes the risk of trading volatility for you and converts payments to you into fiat (USD). The issue here is holding Bitcoins, not accepting them.

As stated before, we refuse to give you financial advice. Please take whatever anyone tells you here or elsewhere with the understanding that Cryptocurrency is a new area of study and much of the financial system has not caught up yet. We’re advocates and enablers but not advisers.