Why Use a Credit Score if You’ve Got Blockchain?

Too Long; Didn't Read

We have all heard about Nike. It’s the iconic brand associated with such athletes as Michael Jordan and Tiger Woods. It is a true symbol of American industry and consumerism. What fewer people know is that Nike started off as an importer of Japanese shoes, before it ever made an American shoe. According to Nike founder Phil Knight, in his book ‘Shoe Dog’, the company also had cash flow issues when it was a small business, just starting out. It went through several banks in its early years, as few banks wanted to keep its business. The main issue which lead banks to drop Nike was that Knight requested small business loans, which banks did not want to give him. His business strategy was growth at all costs, this meant that he used each loan to purchase as much inventory as possible. The net result of this strategy was that he was requesting credit when he had little to no cash in the bank. While this was an effective growth strategy, it made Nike struggle to receive lines of credit each time it wanted to acquire further inventory.