Not just lending! What new scenarios can the Huma PayFi network extend to?
Many people think that Huma only does "future income collateral lending," but in fact, its PayFi network can extend to many new scenarios with great potential.
The first scenario is "installment payments." For example, if you buy a computer for 10,000 yuan and don't want to pay in one lump sum, traditional installments either require credit checks or have high fees. But through Huma, you can use "future 3 months’ salary" as collateral to pay in 3 installments. The smart contract will automatically deduct repayments from your future salary without needing a credit check, and the fees are lower. Moreover, merchants can receive the full payment immediately without waiting for you to finish paying in installments, which is beneficial for both buyers and sellers.
The second scenario is "insurance premium financing." Many businesses need to purchase property insurance and liability insurance, but paying tens of thousands in premiums at once can strain cash flow. Huma can help businesses with "premium financing"—the business uses "future income" as collateral, and Huma pays the premium on behalf of the business first. The business can then repay Huma over several months, allowing them to purchase insurance without affecting their cash flow significantly.
The third scenario is "rent prepayment financing." For instance, if you rent an office and the landlord requires payment for six months' rent upfront, it can be a significant financial burden. Through Huma, you can use "future 6 months’ company income" as collateral to receive money to pay the rent and then repay a portion each month. This is particularly friendly to startups, as it alleviates initial financial pressure.
These scenarios all revolve around "future income," which aligns with Huma's PayFi logic and meets users' essential needs. As long as it continues to expand, Huma's ecosystem will grow larger and larger.
