A Texas-based LLC held 15 BTC as a treasury reserve. They needed $750,000 for equipment financing and an acquisition. Selling meant a Texas margin tax event and potential corporate capital gains exposure. A BTC-backed business loan cost 11.84% effective APR via Arch Lending — roughly $88,000/year in interest — versus a capital gains tax bill that would have been significantly higher. For a deeper look at the math, see our guide on borrowing versus selling.
Business BTC loans are a growing use case that most comparison sites ignore. The mechanics are largely the same as personal loans, but the documentation, tax treatment, and platform requirements differ in ways that matter. Here is the complete picture.
Common business use cases for BTC loans
Working capital bridging: A crypto trading firm needs to fund operations during a period of high trading volume but does not want to sell BTC at an inopportune time. A 6–12 month BTC loan bridges the gap, with BTC collateral returned when cash flow normalizes.
Equipment and expansion financing: A manufacturing or logistics business with BTC holdings needs to purchase equipment or expand facilities. The BTC loan provides the capital without selling equity. Particularly relevant for businesses that believe BTC will appreciate further.
Payroll bridging: A software company with BTC treasury experienced a delayed enterprise contract payment. A 90-day BTC loan covered payroll until the contract settled. The alternative was a costly credit card advance or bridge financing from a traditional lender.
Acquisition financing: A holding company wants to acquire a competitor or complementary business. BTC serves as collateral for the acquisition loan, preserving the BTC position while enabling the transaction.
Which platforms serve business borrowers
Unchained: Commercial Bitcoin Loans are designed for business entities. Requires LLC, S-Corp, or C-Corp documentation. NMLS licensed. quote-only APR + 2% origination + $250/year vault. US-only, $150K minimum. See our Unchained lender page for full details.
Arch Lending: Institutional desk handles business borrowers and can structure loans for LLCs, S-Corps, and C-Corps. Published APR tiers start at 8.49% for top-tier, larger loans; that APR includes the 1.49% origination fee, but borrower tiering and the fee deducted from proceeds still affect cash received. Line of credit structure available for businesses with recurring capital needs. Backed by Castle Island and Galaxy Digital.
Ledn: Business accounts available. Documentation requirements vary by entity type and loan size. Competitive rates for businesses with $250K+ loans. Open Book reporting applies, but collateral/funding-partner terms should be reviewed in the current loan agreement.
Nexo: Supports business entities including trading firms, family offices, and corporate treasuries. In our tracked dataset, the product we compare is a BTC-backed revolving credit line. Its broader footprint includes the EU, UK, and Australia, while the tracked US exclusions are NY and RI.
Documentation requirements for business borrowers
Business loans require additional documentation beyond personal identity verification:
Entity formation documents: Articles of Incorporation (C-Corp), Certificate of Formation (LLC), or Operating Agreement (LLC). These establish the legal existence of the business entity.
DBA filing: "Doing Business As" registration if the loan will be taken in a name different from the legal entity name. Many lenders require this to confirm the entity is legally operating under the name used on the application.
EIN (Employer Identification Number): The business equivalent of a Social Security Number. Required for all business accounts on regulated platforms.
Operating agreement or corporate resolution: Confirms the person signing the loan agreement has authority to bind the entity. For LLCs, this is typically the Operating Agreement. For corporations, a board resolution.
Personal guarantee: Some platforms require a personal guarantee from the business owner, particularly for larger loan amounts. This makes the individual personally liable if the business defaults.
Business loan rates vs personal rates
Business loans are typically priced identically to personal loans on the same platform at the same loan size. Unchained's quote-only APR applies equally to a personal borrower and an LLC. Arch Lending's institutional pricing applies to businesses at $500K+ the same as to high-net-worth individuals.
The pricing advantage for businesses comes from loan size: larger loans access better rate tiers. A C-Corp with a $2M BTC-backed loan via Arch may qualify for the published 8.49–9.99% APR ladder; the 1.49% origination fee is included in APR but still deducted from proceeds, and the final quote depends on borrower tiering.
Tax considerations for S-Corp, LLC, and C-Corp
C-Corp: The most straightforward entity type for BTC treasury management. BTC held as a corporate asset can be pledged as collateral. Selling BTC triggers corporate capital gains at the 21% federal rate (plus state). Borrowing usually does not create an immediate taxable disposal if the loan stays properly structured. Interest paid on the BTC loan is a deductible business expense.
S-Corp and LLC (pass-through entities): The tax treatment depends on whether the BTC is held by the entity or by the individual owner. If held by the entity, the same logic applies — borrowing avoids capital gains, interest is deductible. If BTC is personally held and pledged for a business loan, the tax situation becomes more complex and requires a CPA review.
State tax considerations: Texas, Washington, and other no-income-tax states are particularly attractive for BTC treasury companies because there is no state income tax on capital gains or interest income. Wyoming's DAO LLC structure offers additional blockchain-specific legal frameworks that some businesses leverage.
Minimum and maximum loan sizes for business
Most platforms have no explicit maximum loan — your collateral value and LTV determine the ceiling. At 50% LTV with $1M in BTC collateral, you can borrow up to $500,000. Larger positions unlock proportionally larger loans.
Minimums vary: Ledn starts at $500 (business or personal), Unchained requires $150,000 minimum, Arch Lending at $5,000 minimum for their standard product. For businesses needing smaller amounts, personal BTC loans can sometimes be used for business purposes — consult a tax advisor.
Further Reading
Borrow vs. Sell: What's Better?
The tax case for borrowing against BTC rather than selling — with break-even timelines for different scenarios.
Choosing the Right Platform
How to evaluate which BTC lending platform fits your business structure and loan size.
What Borrowers Actually Pay
A breakdown of effective APRs including origination fees, vault fees, and hidden costs across platforms.
Compare business BTC loan options
Enter your BTC holdings and business structure to see which platforms support your entity type and loan size.
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Key Takeaways
- 01 BTC-backed business loans work for working capital, expansion, payroll bridging, and acquisitions — with documentation requirements (DBA, LLC, EIN) beyond personal loans.
- 02 Unchained, Arch Lending, Ledn, and Nexo all serve business borrowers; Arch Lending is best for $500K+ institutional structures.
- 03 Business loan rates match personal rates at the same loan size — pricing advantage comes from loan size tiers, not entity type.
- 04 C-Corps have the cleanest tax treatment for BTC treasury management; S-Corp and LLC situations require CPA review for the specific structure.