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

Optimizing Your Business for Mobile - Not too long ago, your business would be considered tech savvy if your website was easy to read on a smartphone and employees could access their emails on the go.

But, with how quickly the digital world is moving these days, this is just the beginning...

Getting Started CRM - Customer Relationship Management software, usually called CRM, can keep your customers happy and boost your sales. The right one makes it easy to track who is buying from you and where they are in the sales cycle.

Getting Started

Common Succession Planning - Legacy planning, as owners of family businesses know, is essential for the continued success of the business.

However, that doesn’t always mean that owners take the right steps to ensure a seamless

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
Kaeser & Blair Promotional Products
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free! Learn More.
 
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
7 May 17 Posted by: Sally Keys
in Featured Articles

Optimizing Your Business for Mobile - Not too long ago, your business would be considered tech savvy if your website was easy to read on a smartphone and employees could access their emails on the go.

But, with how quickly the digital world is moving these days, this is just the beginning...
6 May 17 Posted by: Kevin James Culp
in Featured Articles

Getting Started CRM - Customer Relationship Management software, usually called CRM, can keep your customers happy and boost your sales. The right one makes it easy to track who is buying from you and where they are in the sales cycle.

Getting Started
25 Apr 17 Posted by: Dr. Federer
in Featured Articles

Common Succession Planning - Legacy planning, as owners of family businesses know, is essential for the continued success of the business.

However, that doesn’t always mean that owners take the right steps to ensure a seamless
23 Apr 17 Posted by: Sally Keys
in Featured Articles

Conversion Rate Optimization - Every business owner knows the importance of a good online presence to increase a company’s visibility in a crowded and competitive marketplace. But getting more visitors and broader publicity is only half the story.

By improving conversion rates, you can give...
21 Apr 17 Posted by: Kevin James Culp
in Featured Articles

Offering Financing Boosts Bottom Line - Staying afloat takes capital. But the process of attracting financing is confusing for small business owners. That’s why a system like FundAbility is so powerful.

Offering Financing Boosts Bottom Line - Here is a look at how you can offer help with financing...
 
   

Entrepreneur Exchange is our forum where we interview the Influencers, CEO's, Author's, Business Owners Of All Types, Shapes and Sizes.

Entrepreneur Exchange: Today, we sat down with Marc Winkelman, CEO of
Video Spotlight

Become a Dealer For Our Portable Self Loading Forklift! We Want To Talk With You. Call Us Toll-Free for Additional Information at 1-866-924-LIFT (5438) Today!


Premium Sponsor