Use Case
Construction Draw Management
Scenario: A lender utilizes VUMP to automate the draw approval and payment process on a construction loan to reduce inefficiencies and vulnerabilities that plague the industry.
Draw Schedule Establishment
Creation of Draw Schedule: At the project’s outset, the lender, owner, and project manager agree on a detailed draw schedule. This schedule outlines specific milestones and phases for which funds will be released.
Smart Contract Setup: The lender utilizes the platform to create a smart contract corresponding to the draw schedule. Each milestone is encoded into the smart contract with predefined conditions for fund release.
Completion of Milestone
Work Completion Report: The general contractor completes a phase of the project and prepares a detailed report, substantiated by necessary documents, to demonstrate the work done.
Digital Identity Verification: All parties (contractors, subcontractors, suppliers) involved in the completed phase create a verified digital identity linked to a digital wallet to securely complete required documentation and receive funds.
Submission of Draw Request
Document Bundle Submission: The general contractor submits a draw request to the lender. This bundle includes:
- Invoices and Receipts: Detailed invoices and receipts from subcontractors and suppliers.
- Schedule of Values: An updated schedule of values, showing line-item tasks and associated budgets.
- Change Orders: Any approved change orders detailing modifications to the original plan.
- Project Progress Overview: A summary of the project’s progress, outlining the completed milestone.
Automated Verification Process
Smart Contract Verification: The smart contract automatically checks the submitted documents against predefined conditions for the milestone.
Inspections and Appraisals: If required, the VUMP platform triggers an inspection process. Inspection reports are uploaded directly into the platform and verified through the smart contract.
Lien Waivers: Conditional lien waivers are automatically requested from all parties involved, confirming they waive the right to file a lien upon payment. Each party must complete a biometric verification before executing the lien waiver, which is then automatically added to the draw.
Approval and Fund Disbursement
Automated Approval: Once the conditions are met and verified by the smart contract, the draw request is automatically approved.
Fund Release via Digital Wallets: Funds are disbursed automatically from the digital transaction wallet to the digital wallets of the relevant parties (contractors, subcontractors, suppliers) as specified in the draw request.
Post-Disbursement Tracking
Immutable Ledger Update: Every transaction, from draw request submission to fund disbursement, is recorded as an entry on the immutable ledger, maintaining an audit trail of all activities.
Version Control: Any updates or changes to the draw request or documents are recorded as new entries, preserving all previous versions for transparency.
Final Payment and Project Completion
Final Payment Conditions: Additional conditions may be built into the smart contract for final payment, such as final inspections and certificates. The lender can define the requirements.
Release of Final Payment: Once all requirements are met, final payments will automatically be transferred to each party’s secure digital wallet. Final lien waivers and other documentation can be automatically collected upon payment, immutably stored in the transaction record.
Provide insights to customers
Our Difference
Immutable Recordkeeping
Our blockchain-powered system creates VDTs for each closing event, documenting the entire process in a tamper-proof and immutable manner. This record includes details of the participants, documents signed, and key milestones.
Referential Integrity
VDTs are linked to one another, allowing for easy reference and verification of the entire loan closing process. Each event can be traced back to its origin, providing transparency and reliability.
User-Friendly Interface
Our software is designed for ease of use by lenders, borrowers, and closing agents. Participants can confidently engage in loan closings using mobile devices or tablets.
Step-by-Step Use Cases
Explore a variety of industries that can streamline processes and ensure transparency with VUMP.
Real Estate Loan Closings
Streamline real estate closings and disbursements by leveraging advanced identity verification and smart contracts to ensure secure, efficient transactions.
Closing Attorneys
Securely manage the loan closing process, ensuring compliance and reducing fraud through automated identity verification and immutable documentation.
Personal Loan Closings
Our biometric-authenticated eSignature capabilities, paired with unparalleled KYC onboarding, ensure the most secure remote lending operations.
Construction Draw Management
Automate disbursements through smart contracts, ensuring that payments are securely released only when predefined conditions and milestones are met.
WHO WE ARE
Patented by Black Ink Technologies™
About Us
We eliminate opportunities for fraud and ensure that data accuracy and integrity are maintained with easy validation.
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