Our partnership with BTC Point is the next step in revolutionizing the way Bitcoin lending works. From the first moment we heard Mike Hearn speak about smart property, during the Bitcoin 2012 Conference in London, we knew that Bitcoin will revolutionize the world.
Here is what the new ATM Manufacturer Integrated Loans look like:
https://bitlendingclub.com/loan/browse/lid/1507By combining forces, BitLendingClub and BTC Point have managed to create a brand new type of loan which is that much closer to making smart property a reality! Our partnership nearly eliminates the risk of default due to borrower malfeasance. We're hoping that our partnership will eventually allow us to integrate smart loans into the block-chain in a way that has never been done before!
How it works:The platform allows borrowers from all over the world to request a loan for the purpose of purchasing a Bitcoin ATM. When lenders fund the loan and the borrower accepts the funds, then BitLendingClub sends the funds directly to BTC Point. This ensures a level of security which has not been previously provided: the borrower cannot use the funds for anything else but the purchase of the ATM! BTC Point then guarantees that 50% of the operating fees from the ATM automatically go towards paying off the loan by depositing the operating fee directly to the Bitcoin address used to pay off the loan. If the borrower defaults on the loan, then BTC Point provides the option to remotely shut off the ATM via a block-chain transaction. BitLendingClub conducts a small Bitcoin transaction which tells the ATM to shut off. As long as the ATM is turned on and processing Bitcoin transactions, then the termination transaction will be processed. Essentially, it allows us to place a digital lien on a physical asset!
Automatic payments from the borrower's balance to the lenders are enabled and the borrower is not allowed to disable the automatic payments. When the loan is repaid, BitLendingClub allows the borrower to invest and withdraw funds from his account. Please note that when you choose "ATM Purchase" loan type, you won't be able to use your account to withdraw BTC, invest or create new loans until the loan is repaid.
