Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Your Free Business Opportunity Resource Is Easy To Use
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Free Lead Generation is a hot topic these days since many pay a pretty penny per portal to generate leads to increase ROI.

Free Lead Generation is part of any markets platform.  It is important to note that this November was 'nutty' for lack of a better word.  The purpose of this blog post...

Small Business Media and tapping into that vein can be a tricky and somewhat slippery slope unless you know some tricks of the trade.  Getting your message in front of the right audience is often the key to success.  So, where are the keys to the kingdom you ask and how can you get your hands on...

Entrepreneurs' Day 2016 on the 15th was outshined by politics, climate change discussions and so much more.  That is a real shame since small business is the backbone of this Country.

Entrepreneurs' Day - In my world it is Entrepreneurs' Day every day! I think, sleep and breath Entreprenuership...

Sponsors

Paid2Save Click or Call Bill Toth (716) 345-1888
If you could Travel more, Have Fun, and get Paid doing it, would you want to know more about it?
How Many Leads Does It Take To Close A Sale?
This Article is now live on our blog and I know could be very insightful for many. Read On
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
I Want To Buy a Business Opportunity or Franchise
Who are the types of people who buy a business opportunity or small franchise? According to people in... Read on
 
Resource Center > Article
Small Business Micro-lending at 0% in the U.S. Takes Off
29 Mar 13 Posted by: Kathleen C Lanza
in Featured Articles
Share this Article:

Want to start your own small business to advance the social good, but don’t have the necessary startup cash in hand? Or perhaps you already own a small business of your own that is doing great things, but need some extra money to achieve your goals.

Now, thanks to international non-profit and micro-lending pioneer Kiva, anyone from your next-door neighbor to a stranger you have yet to meet living thousands of miles away may be not only able to lend you what you need, but willing—and at no interest.

micro-loan-introWhile the latest reports show small business credit is loosening up, the smallest of small businesses are still struggling. “This is a very big deal,” said former President Bill Clinton when announcing Zip’s pilot project in his hometown of Little Rock, Ark., this month. “We have gotten ourselves in a situation now where the only people who can get real money are the people who don’t need to borrow it.”

Kiva hopes to change that scenario by providing a platform that connects willing lenders with vetted small-business borrowers to expand both their financial opportunities and access to necessary funding at little to no cost. But who would want to lend money to a small business owner and never see any interest out of their investment?

Turns out, more people than you'd think.

In fact, as of the end of August 2012, Kiva’s Zip pilot program already had disbursed loans to some 250 borrowers via about 1,000 lenders whose only reward more or less was in seeing other entrepreneurs succeed and having the satisfaction of a job well done. It’s all in support of Kiva’s mission “to connect people through lending to alleviate poverty, empowering individuals to create opportunity for themselves and others through safe, affordable access to capital.”

While Kiva Zip is not a risk-free lending platform, initial repayment rates are encouraging. In fact, more than 87% of U.S.-based borrowers have repaid their loans thus far, making them a good gamble and strong candidates for obtaining yet more funding in the future. Additionally, borrowers in good standing can earn the right to become trustees in Kiva’s loan process.

Trustees are the individuals and/or organizations in the Zip lending model who vet and then vouch for potential borrowers. While trustees do have an important hand in the overall process, they do not handle the loans directly and receive no financial compensation for their efforts.

Rather, borrowers and trustees are publicly recognized and rewarded for their contributions to the Zip community, as well as on-time loan repayment, through a merit-based system that awards badges and points in accordance with performance. Badges earned result in such benefits as the ability to raise money more quickly, the potential to borrow more money at a later date and—in the case of trustees specifically—the ability to endorse more borrowers in the future.

For Kiva Zip loans made in the U.S., the entire amount goes directly to the borrower with repayment expectations laid out in advance. Should the borrower default, there are repercussions, which may include credit score reporting, lack of access to future Kiva loans, or extensive interviews to assess problems and avoid them in the future.

Criteria used to assess Zip borrower eligibility are as follows:

• Social and economic need

• A sound business plan

• Little to no debt

• No bankruptcy or foreclosure proceedings, current or pending

As for trustees, they need to feel comfortable endorsing a borrower’s character and assessing their level of financial responsibility. That same level of due diligence is then maintained over the loan’s term as trustees provide their borrowers with ongoing support and help them manage their personal finances to ensure repayment.

To learn more about Kiva Zip, click here now!

What do you think about this relatively new approach to small-business lending? What lending and borrowing options have you found most helpful in starting and growing your small business? Do you think small business lending is finally loosening up a bit? Why or why not?

 

Related Blog Posts
22 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Free Lead Generation is a hot topic these days since many pay a pretty penny per portal to generate leads to increase ROI.

Free Lead Generation is part of any markets platform.  It is important to note that this November was 'nutty' for lack of a better word.  The purpose of this blog post...
21 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Small Business Media and tapping into that vein can be a tricky and somewhat slippery slope unless you know some tricks of the trade.  Getting your message in front of the right audience is often the key to success.  So, where are the keys to the kingdom you ask and how can you get your hands on...

21 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Entrepreneurs' Day 2016 on the 15th was outshined by politics, climate change discussions and so much more.  That is a real shame since small business is the backbone of this Country.

Entrepreneurs' Day - In my world it is Entrepreneurs' Day every day! I think, sleep and breath Entreprenuership...
17 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Business Opportunity Blog- Chicago, IL—BusinessOpportunity.com, one of the most visited biz opp marketplaces on the web, announced today their new Sponsored Article Marketing service.

Business Opportunity Blog - Reach More People through the Biz Opp Blog! Business Opportunity Blog...
16 Nov 16 Posted by: admin
in Featured Articles

How to Pinpoint the Weaknesses in Your Company - Nobody likes to think about what is going wrong in their company or what their weak points may be. This is why when employees are asked to perform a SWOT analysis, they go to great lengths to mention the company strengths and minimize the flaws.

 
   

SocialXpand Business Opportunity Interview w/ Brian Weiss was for me a new way to learn from a customer and whom I consider a friend in the industry.

I've had the opportunity to work for a while now with Brian Weiss who is the Director of Sales for the
Video Spotlight

If you could Travel more, Have Fun, and get Paid doing it, would you want to know more about it?

Premium Sponsor