CapitalFinancialInvestor Only
Proveniq Capital
Collateralized lending at scale with verified physical assets
The Lending Opportunity
Traditional lenders cannot efficiently use physical assets as collateral because:
- Verification costs exceed loan economics
- Monitoring requires physical possession
- Liquidation is slow and uncertain
- Fraud risk is unquantifiable
Proveniq Capital solves these problems with ecosystem integration.
How It Works
The Capital Advantage
| Challenge | Traditional | Proveniq Capital |
|---|---|---|
| Verification | Manual appraisal ($200+) | Locker scan ($25) |
| Monitoring | Physical possession | SmartTag real-time |
| Liquidation | 60-90 days | Bids marketplace (12 days avg) |
| Fraud Risk | Unknown | Scored and priced |
Loan Flow
┌─────────────┐
│ APPLY │ Borrower selects verified asset
└──────┬──────┘
▼
┌─────────────┐
│ UNDERWRITE │ Automated valuation + risk scoring
└──────┬──────┘
▼
┌─────────────┐
│ SECURE │ SmartTag attached, geofence set
└──────┬──────┘
▼
┌─────────────┐
│ FUND │ Loan disbursed, lien recorded
└──────┬──────┘
▼
┌─────────────┐
│ MONITOR │ Continuous SmartTag telemetry
└──────┬──────┘
▼
┌─────────────┐
│ RESOLVE │ Repayment or liquidation
└─────────────┘
Underwriting Model
Loan-to-Value (LTV)
LTV ratios based on asset characteristics:
| Factor | Impact on LTV |
|---|---|
| Verification Status | +10-15% for Locker verified |
| Provenance Depth | +5% per year of history |
| SmartTag Monitoring | +5% for active monitoring |
| Asset Liquidity | Higher LTV for liquid categories |
| Borrower Profile | Adjusted for credit history |
Typical LTV Range: 50-70%
Risk Scoring
Every loan receives a risk score incorporating:
- Asset volatility and depreciation
- Borrower creditworthiness
- Collateral liquidity
- Market conditions
Pricing
Interest rates determined by:
- Base rate (benchmark + spread)
- Risk adjustment
- Term premium
- Collateral quality discount
Collateral Management
SmartTag Integration
During loan term:
- Location Monitoring — Asset must stay within geofence
- Motion Detection — Alerts on unexpected movement
- Tamper Detection — Immediate notification of interference
Breach Protocol
If collateral breach detected:
- Borrower notified immediately
- Grace period for explanation (24 hours)
- Loan acceleration if unresolved
- Recovery process initiated
Recovery Process
If borrower defaults:
- Demand letter issued
- Asset recovery (if accessible)
- Bids listing for liquidation
- Proceeds applied to loan balance
Financial Performance
Portfolio Metrics
| Metric | Performance |
|---|---|
| Total Loans Originated | $312M |
| Average Loan Size | $8,500 |
| Weighted Average LTV | 62% |
| Default Rate | 2.1% |
| Recovery Rate | 94% |
| Net Yield | 18.4% |
Waterfall Structure
Loan repayments distributed in priority order:
- Platform Fees — Servicing and origination
- Lender Principal — Return of invested capital
- Lender Interest — Contracted yield
- Borrower Equity — Remaining value returned
Investor Opportunity
Funding Sources
Capital accepts funding from:
- Institutional Investors — Credit funds, family offices
- Accredited Individuals — Direct loan participation
- Warehouse Facilities — Bank credit lines
Returns Profile
| Tranche | Target Return | Risk Level |
|---|---|---|
| Senior | 8-10% | Low |
| Mezzanine | 12-15% | Medium |
| Equity | 18-25% | Higher |
Diversification
Portfolio diversified across:
- Asset categories (watches, jewelry, art, etc.)
- Loan sizes ($1K - $100K)
- Geographies (US, UK, EU)
- Borrower profiles
Compliance
Lending Licenses
- State lending licenses where required
- NMLS registration
- Usury law compliance
Consumer Protection
- Truth in Lending Act (TILA) disclosures
- Fair lending practices
- Privacy policy compliance
UCC Filings
- Perfected security interest via UCC-1
- Lien recorded on Ledger
- Priority established at filing