Who do you lend to?

[Guest]

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[Joe]

Any specifics that you look for when browsing through listings on Kiva? Does the estimated re-payment time matter? A mix of both? Favorite regions (that is a forum profile question as well)? Favorite business sector? Do you lend to mostly women? Mostly men? A mixture of both?

Share your thoughts.

[lemming]

I have loaned to women and men; I generally try to fund businesses that are interesting to me in some way beyond just supporting the entrepreneurs. I like and have supported women who are doing nontraditional work such as quarrying and charcoal sales, and I remember avoiding someone who made their living selling soda (not good for anyone in the first or the third worlds).

I gravitate toward the smaller loans, where a smaller amount can help to change a life more.

Estimated repayment time doesn't really matter to me, nor does geographical location (except that I've noticed the Kenya loans are REALLY slow to get started sometimes, and that's annoying).

[Joe]

Just about anyone photographed with kids or a story about being a single parent gets me. I remember one instance where Kiva was nearly out of business listings and I had a choice between someone (photographed in an office) who needed 2 grand to buy a new computer for her successful looking business and another woman (photographed in what looked like her small kitchen) who works with tomatoes and sells them, along with making side products like sauces. I went with her.

I think the slow starts is something that's been addressed on the Yahoo group. I'm sure someone can jump in if I get this wrong but if I recall correctly, some of these MFI's have cash reserves. So once the amount listed on Kiva is raised, they just go into their piggybank and give it out to the person in need within days/hours. When the money is transferred from Kiva, the MFI keeps that to cover the advanced loan. Then there are others that don't have much cash on hand and have to wait for a wire transfer or something like that, which delays the start.

It's probably safe to say MIFEX is one of those big ones with lots of reserves. For example, this business was listed today.

http://www.kiva.org/app.php?page=businesses&action=about&id=7340

I helped fund it this afternoon when she was only at $25 raised. She got completely funded some time late afternoon/early evening (eastern time) and about 3 hours later the status is set to "paying back". A message was just posted (MIFEX staff person?) about how she thanks the Kiva community for helping her and her future. So I wonder if she got the money already and is on her way. That was quick! Go Maria.

[optimistic.bob]

As I have shared in other threads, I am not very discerning about who, where, what or why I 'decide' to make a loan. I have an overwhelming bias towards action so I look for loans that my small contribution will complete. I get a lot of satisfaction knowing that the resources will soon  be in a borrower's hands and I trust that Kiva and our partners have done the necessary vetting. Not sophisticated or analytical, but it works for me.

[FANAFI]

One of our goals is to lend to every available country at Kiva. Then, well, we simply continue to do so.

Heather favors Eastern European countries and Jeff is more interested in the need, for example... Jeff was the one who picked the 'butcher' and 'pub owner' for our first loans! Come on, who doesn't want to own a pub?!

-Jeff & Heather

[Julia]

My loaning tends to be like optimistic.bob's, I like the smaller loans and I trust Kiva and their partners to do the business end. I never consider 'repayment'.

I am also trying to lend in every country (23 or 24 now I think?) and I try to get in on Honduran loans, expecially to Teguigalpa.  I have an active (and even an official) interest in helping Honduras.

I have gone and bid on the oldest loan, just 'cause it was old.
And I have joined in challenges by the Pondering Pig group to help fund individuals.

And yah, I lent to a pub owner 'cause I like pubs!

As a vegetarian I sometimes have issues with cattle and such, but I do realize how much it helps them.  But I don't think I will be lending to any gerbil farmers when those Mongolian loans start coming in...  

(FYI a gerbil is like a mouse and it won't be farmed, I'm joking)

[FANAFI]

Julia,

I liked the butcher idea as it allows me to say 'Hey, don't mess with me, I have a business associate who is a butcher!'

We are going to be adding more loans this weekend. Got to help make Kiva a global phenomenon!

-Jeff

[Pondering Pig]

I too prefer Mongolian gerbil ranchers above all others, but when there are none available, I loan to women.  The face of poverty throughout the world is the face of women, and I don't like that.

[Ramón]

We lend to Latin American entrepreneurs only. Since the number of loans available is general greater than amount of money we can invest, we tend to apply some kind of "feel good" minimal due diligence. I've blogged quite substantially on the criteria we try to apply (and then deviate from), but generally, it's based on:

• diversification of loans over multiple MFIs
• diversification over multiple countries
• is the amount big enough to make an impact
• is the repayment time in line with the loan amount
• do I believe in the success of the business?
• "in case of equal value, preference will be given to female entrepreneurs"

I know that we deviate with this "social business" like approach from many other lenders, but we strongly believe in helping create market opportunities for these micro-entrepreneurs. This minimal (and certainly subjective) due diligence allows the entrepreneurs to optimize the opportunity it creates

[nfolkert]

When I look for a new loan, the first thing I look for is to see if there are any new countries on the list that I don't already have.  After that little OCD episode is over, then I prefer to loan to businesses that invest money into capital goods -- anyone who wants to buy tools or machines, or who can repair tools and machines.