Microbusiness and Lending
Lending (also known as "financing") occurs when someone allows another person to borrow something. Money, property, or another asset is given by the lender to the borrower, with the expectation that the borrower will either return the asset or repay the lender. The most common lenders are banks, credit unions, and other traditional financial institutions. However, there are many other types of lenders, including: Peer-to-peer (P2P) lenders, Crowdfunding contributors, Family and friends and Yourself. P2P lenders can operate through online organizations, like Lending Club. These sites connect lenders with borrowers. Crowdfunding sites like Kickstarter are similar to P2P lending sites, in that they digitally connect the people who need money with the people who have money. Family and friends can become lenders, and these transactions are sometimes called "private party loans." If you have the means, you can loan your own money to your business as an alternative to investing in it. Credit is highly demanded in different parts of the world, mainly for capital requirement to improve land, purchase of main agricultural inputs including fertilizers, seeds, pesticides, and purchase of farm machinery. The institutional sources of credit (such as the ZTBL and other Commercial Banks) should improve their loaning schemes to better suit the diversified needs of small farmers.
Lending (also known as "financing") occurs when someone allows another person to borrow something. Money, property, or another asset is given by the lender to the borrower, with the expectation that the borrower will either return the asset or repay the lender. The most common lenders are banks, credit unions, and other traditional financial institutions. However, there are many other types of lenders, including: Peer-to-peer (P2P) lenders, Crowdfunding contributors, Family and friends and Yourself. P2P lenders can operate through online organizations, like Lending Club. These sites connect lenders with borrowers.
Crowdfunding sites like Kickstarter are similar to P2P lending sites, in that they digitally connect the people who need money with the people who have money. Family and friends can become lenders, and these transactions are sometimes called "private party loans." If you have the means, you can loan your own money to your business as an alternative to investing in it.
Credit is highly demanded in different parts of the world, mainly for capital requirement to improve land, purchase of main agricultural inputs including fertilizers, seeds, pesticides, and purchase of farm machinery. The institutional sources of credit (such as the ZTBL and other Commercial Banks) should improve their loaning schemes to better suit the diversified needs of small farmers.
