Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Buy A Business Opportunity of Franchise
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

Looking to start a business? Why not market to baby boomers? Take advantage of the fastest growing consumer demographic with these 25 start-up ideas for baby boomers.

25 Start-Up Ideas for Baby Boomers - Whether you’re a baby boomer who is looking to start a business...

Want more sales? Need to grow your business? Use the Top 7 methods to generate more leads!

If you read Friday’s blog, you know that one of the best ways to increase sales is to generate...

Are sales down? Do you need to boost sales? Check out our latest tips and tricks to increase sales fast!

Let’s be honest, if sales are low, business and moral are low. Low sales over a period of time can lead to a business shutting down. With online retail giants, like Amazon,...

Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
Promotional Products Home Business
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free! Learn More.
Residual Income Business Opportunities
Residual Income is the way that you work once and get paid multiple times—sounds great!... Read On
Top 7 Reasons to Consider a CMS
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
Low Cost Business Opportunities to Own
Are your right for a Low Cost Business Opportunities to Own? The desire to own your own business... Read On
The Top 10 Reasons to Buy a Business Opportunity or Franchise
Starting your own small business is part of the American Dream, right up there with owning your own home. Read On
7 Keys to Leading Highly Effective Sales Conversations
Most people's sales conversations could be better. Not a little better, significantly better. Read On
How Many Leads Does It Take To Close A Sale?
This Featured Article is live on our blog and I know could be very insightful for connectivity and ROI.
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
18 Oct 17 Posted by: Margaret Mallonée
in Featured Articles

Looking to start a business? Why not market to baby boomers? Take advantage of the fastest growing consumer demographic with these 25 start-up ideas for baby boomers.

25 Start-Up Ideas for Baby Boomers - Whether you’re a baby boomer who is looking to start a business...
16 Oct 17 Posted by: Margaret Mallonée
in Featured Articles

Want more sales? Need to grow your business? Use the Top 7 methods to generate more leads!

If you read Friday’s blog, you know that one of the best ways to increase sales is to generate...
13 Oct 17 Posted by: Margaret Mallonée
in Featured Articles

Are sales down? Do you need to boost sales? Check out our latest tips and tricks to increase sales fast!

Let’s be honest, if sales are low, business and moral are low. Low sales over a period of time can lead to a business shutting down. With online retail giants, like Amazon,...
11 Oct 17 Posted by: Margaret Mallonée
in Featured Articles

To help you get inspired, we’ve collected success stories from some of the top mom entrepreneurs of 2017, or mompreneurs.

There is no question that starting your own business is tough. It requires a lot of time, dedication, effort, and money. You’re putting your financial stability, job security,...
6 Oct 17 Posted by: Margaret Mallonée
in Featured Articles

Best Money Making Small Businesses – What Industries Are Booming? What Industries Are Tanking?

It’s no surprise there are a million and one ideas for small businesses. Taking the risk to open your own business takes a lot of courage. You’re putting your livelihood, job security, and financial...
 
   

I had the pleasure of chatting with Shawn Pigg, CEO of Hotels Etc. for BusinessOpportunity.com's Podcast series that will be released very soon on our new Digital Platform.  Here is the transcript from that call for our regular RSS feed subscribers who get all of our posts first.

If you would...
Read More

Video Spotlight

Click Now To Request Information

Click Now To Request Information


Click To Listen To Our Latest Entrepreneur Exchange w/ Shawn Pigg, CEO Hotel Etc.

Click Now To Request Information


Premium Sponsor