The "huge" refers to receiving fiat in a bank account in a day or two. Most exchanges take over a week to send fiat.

And although it is true that the owner may lose his/her crypto if the crypto collateral keeps on decreasing in value or if the custodian has a heist, not having to sell your crypto at the bottom of a market is a nice option to have. It also helps to prevent the continuation of bear markets in crypto as would be sellers get loans instead. And the loan interest is tax deductible in many jurisdictions, and one does not have to incur capital gains tax if taking the loan instead of selling the crypto assets.