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>>I haven't seen the defi solutions for business loans in other words

It's possible, but only in a round about manner at the moment. To get a regular business loan typically you need to have collateral security, normally that is some combination of property, plant, equipment or financial instruments like shares.

Crypto loans (see AAVE) can only presently be secured by crypto collateral. That's not necessarily a bad thing - it keeps things simple and offchain (ie tangible) collateral can be financialised easily enough with existing tradfi tools. In a round about way if you wanted to get a business loan via crypto at a better rate than your bank, you would borrow from your bank in $ (lets say 2%), swap $'s into something like USDC, deposit it at 7% on chain and then borrow something like Ethereum against it at 3%, you now have positive carry on your loan (4%) and a pile of Ethereum (if you so want).

If you want to deal exclusively in offchain assets as collateral for onchain loans, nobody yet has bridged that gap, its a huge opportunity for sure. UBS I note is experimenting in the space.

https://www.finews.asia/finance/34488-ubs-tokenization-block...

This kind of lending is probably the precursor to normal business loans. It's proving the concept on a global scale.

I don't think it's proving the concept. The hard parts about lending are figuring out what is a good risk, what the rates should be, handling repossession, negotiating terms, dealing with laws, all that stuff. Cryptocurrency lending isn't doing any of the hard part of lending and it also doesn't seem to have any advantage over the existing system for doing the hard stuff. Meaning: in the cryptocurrency future, how will it be easier for a restaurant to use their business as collateral to take cash to do upgrades?

> what is a good risk, what the rates should be, handling repossession, negotiating terms, dealing with laws, all that stuff

These are the problems being worked on in defi right now and why people are so excited about it.

> in the cryptocurrency future, how will it be easier for a restaurant to use their business as collateral to take cash to do upgrades?

In the idealized future, the restaurant would have their complete transaction history available on-chain for lending contracts to use. Then, instead of a banker making a decision if the restaurant deserves the loan, an algorithm can make that determination and instantly grant the loan. Such a contract might use data points like amount of restaurant supplies purchased, number of customers, average sale price, demographics of the location, all of which would be on-chain and available to a contract.

This is good because it removes bias and discrimination that currently exists in the traditional system, increases the speed at which your restaurant owner can access their capital, and decreases the overall cost of doing the transaction because humans don't need to be involved.

If the goal is to automate loans then why do we need cryptocurrency? Couldn't we automate loans using business data in the current world of centralized finance?

The benefit you're suggesting, that all the restaurant's transactions would be on the blockchain and so lenders could automatically evaluate the risk, is at odds with my understanding that bitcoin has high transaction costs and slow speeds and it is therefore unlikely that all of a restaurant's patrons would ever be paying with on-chain transactions. Maybe they could pay with something like a Coinbase credit card, and Coinbase could make transaction histories available to lenders - but I have to imagine something like that exists in current finance with our current credit card companies.

Right now it’s not very easy to loan money from an entity that doesn’t have a domestic presence. Defi could make some financial products more accessible to countries that don’t have that infrastructure yet.

There is no way countries will allow these sort of cute workarounds to local regulations in finance.

Obviously bitcoin wouldn't be used for this kind of operation. Again, we're at proof of concept stage. The reason Blockchain would be preferred over traditional finance for proving transactions is because traditional finance would have difficultly integrating disparate systems and potential for histories to be manipulated. If everything is on-chain and verifiable then it makes this process a lot easier.

> This is good because it removes bias and discrimination that currently exists in the traditional system

Just because code makes the decisions doesn't mean that there is no bias and discrimination built into the code. This will eventually create bigger problems down the road due to the massive scale this can be deployed at when compared to a banker having to make the final call.

> If I want to borrow 100k to refit the kitchen in my restaurant, can I do that with cryptocurrency

If you have a large crypto portfolio (which many do) to use as collateral, you absolutely can do this.