We are delighted to announce that due to expanding interest in Merchant Integrated Loans, CoinOutlet has joined as our new Merchant partner. Through this unique partnership, we have managed to create a new type of loan which is that much closer to making smart property a reality! More businesses are accepting Bitcoin every day and even more people are looking for ways to get Bitcoin and CoinOutlet ATMs provide an easy and convenient way for them to do so. This partnership greatly expands the number of borrowers that will now be able to purchase Bitcoin ATMs.
- This loan type nearly eliminates the risk of default due to borrower malfeasance.
- There are no up-front cost for the borrower
Under the agreement Coin Outlet guarantees the following:
- The ATM has a shut-off option in case of non-payment.
- The ATM shut-off option has been tested and is functioning prior to product delivery.
- The loan is secured by CoinOulet ATM hardware as well as operational capital.
- The operational capital is in Bitcoin and is under the control of CoinOulet.
- In case of default, BitLendingClub will notify CoinOutlet and the ATM will be shut off.
- In case of default, any of the Bitcoin operational capital for the ATM can be used to recoup partial or full losses.
CoinOutlet is not responsible for any losses which may occur due to fluctuation of exchange rates, issues with delivery, lack of profitability of the ATM, or any other factor which may affect the ability of the ATM equipment to make payouts.
The Terms and Conditions of CoinOutlet apply to the relationship between the customer and CoinOutlet under each relevant loan contract.
If the ATM equipment is not profitable and the loan is still not paid off, then the borrower is still responsible for any remaining balance.
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 CoinOutlet. 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! If the borrower defaults on the loan, then CoinOutlet 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.
BitLendingClub is extremely excited about the partnership and the opportunity to provide a solution to people who are in need of a loan to purchase Bitcoin ATM machines. This is a whole new, more secure type of loan in the digital world!
Thank you for being part of the BitLendingclub community — we hope you enjoy it!
BitLendingClub is open to a partnership with every Bitcoin merchant and hardware manufacturer who can provide similar guarantees with regards to loan repayment