Lending Circles |
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A lot of communities have what is called Lending Circles, also designated as micro-lending. Lending circles have originally been created to give people with no credit record access to small loans in order to build their credit. These are small organizations. Entrepreneurs are grouped in teams of around 10 and the loans are usually in the neighborhood of $500, up to $2,000. Members of each team are mutually responsible for the other members of the same team, i.e. if one member defaults on her payments, other members are obligated to pick up the slack.The default rate is very low for this type of lending, but the loans are also small and short term. This formula has been used at home but also abroad. It is quite popular in developing countries, with groups of women.The people managing this type of program are usually with para governmental organizations or business associations. For more information, inquire with your local government branch.
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One note of caution, however: ask to see the complete conditions of any type of financing you are getting involved with. This author has seen a lending circle in a third world country charging interest rates and government fees that totaled 72% of the loan per year. This is an unusual situation, but it happens. It is unthinkable that a small start-up would make enough profit to be able to repay that an make a profit. That is why it is important to get all the information before getting involved with any program.
Please note that none of the following networks have been tested. If you have any feedback to give about them,
| Lending Circles | List of Angel Networks U.S.A. |
List of Angel Networks International |
Other potential sources of money: National PayDay  |
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