Other option is doing secured loans ourself (this was mentioned in the contract and would be fine). Basic terms would be:
We'd only do secured loans.
Loans would have to be secured by providing collateral to us - in the form of solid securities - with a value significantly in excess of the loan value.
We'd charge a pretty low rate - reflecting the very low level of risk to us. Something like a 1% setup fee then .1% per day.
Loans would be small ones (10-100 BTC). Micro loans (under 10 BTC) aren't worth the hassle and we don't have the capital to do medium (100s) or large (1000s) ones.
I'm fine with doing that - but do SELLING holders want me to? Feed-back welcome - don't worry about the details just whether you'd like it done in principle. Before any loans would be made a contract for borrowers would need to be approved by SELLING (and so would the securities we'd accept as collateral).
I don't see how could we enforce such a loan, in case the borrower defaults.
On Coinlenders TradeFortress covers the defaults himself, and due to the high volume the change that a substantial amount of loans will default at once is very small.
Hence, for this to be interesting, we would need to ask for a very high interest rate, better than what we would earn depositing at Coinlenders.
I have no idea how much Coinlenders asks his borrowers, so making comparisons isn't quite easy.