5/6 Loan to poor people
By risk_taker20
@risk_taker20 (2096)
Philippines
November 10, 2010 4:12am CST
If you have extra funds and someone convince you that there's a high return if you invest it in loans or microfinancing business.
Nowadays, small businessmen/vendors resort to avail of loans payable in 3-12 months to augment capital.
But for the one who have the funds, it's very risky that this small businessmen will not be able to payback even with 20% interest.
What can you say to those who enter on this kind of business?
1 response
@islandrose (686)
• Philippines
10 Nov 10
Well,risk is always present in this kind of business, that's why, the owner of the money must study the behavior and payment capacity of the people around him/her before he/she will open to such business. He/She must have an efficient collector/s.
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