Using Sivo DeFi, lenders—who we call originators—offer low-cost or interest-free credit to borrowers in exchange for a portion of their future revenue. This works because the cost of generating revenue is typically lower than the revenue itself, creating a margin. This margin allows credit to be provided at minimal or no cost to the borrower, while still offering enough upside to fund the loan and mitigate risks associated with high-risk borrowers, such as those with unpredictable income or limited credit history.
​
For example, a borrower with a 50% gross margin could exchange $2,000 in future revenue for $1,000 in credit, meaning their effective cost is only the $1,000 they receive. This works because the margin not only covers loan repayment but also additional expenses, such as a marketing budget for the originator to attract new customers. These customer purchases drive revenue growth, accelerate loan repayment, and qualify the borrower for additional credit.
​

As a result, the borrower gains access to increasing, interest-free credit while attracting new and repeat customers.
​
See how Sivo DeFi works for: