Microlending helps small entrepreneurs start businesses Essay

Microlending helps small entrepreneurs start businesses - Essay ExampleKiva is different from those of its traditional counterparts in the awareness that it allows individuals and formations to borrow and lend capital online. What this means is that people do not have to go to a physical location to borrow money from Kiva or lenders. While many micro-lending institutions depend on money deposited by their members or bank loans to serve their customers, Kiva depends on lenders spread across the world for funds and has partnered with variant local micro-finance organizations to disburse funds to loanees. While many micro-lending organizations are profit oriented, Kiva is a non-profit organization.The business ride adopted by Kiva may not work with larger loans owing to the risks involved. In the answer that the organization gave a large loan to a person or organization that is not formally naturalized and without committing an asset as collateral, the organization (Kiva) may exp erience a huge detriment in the event that the loanee defaults in payment of the loan. This means that lenders would not be able to recover their funds leading to loss of confidence in the organization. Without confidence or good will, the organization would ultimately fail or