What are the benefits of using a Power Block loan?
A loan from Power Block enables you to use less your cryptocurrency as collateral and receive more cash/USD to use in your business. Borrowing against your cryptocurrency enables you to receive liquidity/cash now. Depending on your taxing country laws, such loans typically do not trigger a capital gains tax event.
Who is Power Block Coin?
Power Block Coin LLC is a non-bank lender that offers Cryptocurrency collateral loans for commercial purposes. Our mission is to bring liquidity to the Blockchain community and help commercial enterprises grow, even in a bear market.
What does 70% LTV mean?
The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset. For example, if you send $100,000 USD worth of Bitcoin, we will disburse 70% of its $100,000 USD value to you. In this example, we would send you 70% LTV or $70,000 USD. (This ratio excludes prepaid interest)
What are the interest rates of borrowing?
Power Block interest rates range as a function of the current market. We base the interest rate on the cryptocurrency used as collateral. We do not do credit checks as the loans are secured by cryptocurrency assets.
How is Interest calculated on my loan?
The Interest is calculated on the total USD value of the cryptocurrency collateral sent to Power Block. We structure our loans this way so the borrower can use 100% of the loan proceeds during the term of the loan. There are no payments until the last day of the loan.
Why do you hold 30% of cryptocurrency balance as cash collateral?
Because of the price volatility of cryptocurrency, we hold 30% of the cryptocurrency you send as cash collateral denominated in USD. This cash collateral is held in custody to protect your account from downside risk if the price of your underlying assets decreases in value.
What happens if the value of my cryptocurrency significantly increases?
If the USD value of your cryptocurrency increases more than 5% above the USD value at loan origination, we will credit your account (lower your payoff balance). Under certain circumstances you may have the option to receive some of the credit as an additional cash dispersment as the cryptocurrency increases in value.
What happens if my cryptocurrency significantly decreases?
If your underlying asset value decreases by 20%, we will notify you that you may be required to post additional collateral to maintain 70% loan-to-value of the assets. If the value of your cryptocurrency collateral drops below 30% of the initial value, we will call the loan due and liquidate cryptocurrency assets and apply the cash to payoff the loan.
How is my cryptocurrency being protected?
Power Block engages multiple liquidity providers and manages the cryptocurrency assets to provide the best loan-to-value ratios for our customers/borrowers. Power Block assures that its liquidity partners maintain the necessary cryptocurrency inventory to manage market risk.
Can I payoff my loan early?
Yes, once your loan is paid off, collateral is released to your preferred address. There may be a prepayment penalty for early repayment.
Who is eligible for a loan?
Power Block can lend to any person or entity for commercial purposes only.
Can I still take out a Commercial Loan if I don’t live in the USA?
Yes, if we do not already have KYC / AML you must provide KYC / AML information as part of opening a customer account with Power Block.
Will my credit score be affected by applying for a Power Block loan?
No, Power Block does not check credit scores or credit ratings.
What if I am interested in only buying bitcoin or selling bitcoin?
Power Block will facilitate OTC transactions for the following cryptocurrencies (BTC, ETH, LTC, and XRP).
What are the benefits of using a Power Block loan as compared to other lenders?
Power Block requires less cryptocurrency to secure a loan than other lenders. Power Block does not require monthly payments which gives your commercial operation the maximum cash flow availability. Other lenders require monthly payments which dramatically reduces the available cash flow to be used by your commercial operations.