Today I want to tell you about micro-lending and show you one of the platforms on which you can work and receive income from the fact that you lend money to other people. I drove the platform, it pays and the platform itself is honest. Let’s not be confused with the notorious web transfer, which, in addition to real credits in the system, launched a “spirit” which, like, took loans from users at interest.
This is my personal opinion about this system and of course, I could be wrong. But it’s not just that they have problems with payments and all kinds of nonsense on the site. I will not pour a lot of excess water and will try to describe as briefly as possible all the principles of micro-lending itself.
What is micro-lending?
In fact, as you might guess from this question, these are small loans. Why is this good? Well, firstly, a small loan, let’s say a couple of thousand rubles before payday, is easier for a person to return than a large loan, and secondly, if you gave someone a small amount in debt and he did not return it to you, this is not so scary for you as if you gave, say, 60% the cost of a new car.
Well, the idea of micro-lending itself, bypassing banks, has been around for a long time. But there are always many aspects that negatively affect this idea. It is difficult to create an online system in which both lenders and borrowers are happy a system in which people themselves want to give loans. This is probably the cornerstone of all such systems and each is trying to solve it in its own way, web transfer has come up with an arbitration system, but it is not a panacea!
In principle, in order to start lending, you need to be aware of the risks and understand how to minimize them (you will not believe, but any investment involves risk, even a deposit in a bank at interest, but if you put money in a nightstand for a long time, you will also lose it, even without looking back at the chance that they can be stolen from there, inflation will eat up part of their value)
Minimum Things to Know
“Store your eggs in different baskets” this principle has been known since ancient times. Here it is called diversification… Let me explain with a simple example, let’s say you have 1000 dollars/rubles/euro/bitcoins, it doesn’t matter. You want to lend them and receive income from them. Imagine that you lend your thousand for a loan at, say, 5% per month for a month and at the end of the month received 1050.
How good!!! The next month, you lent them again and, let’s say, spent the earned 50. Everything is fine and so from month to month. You have already received back; let’s say 500, half of the amount you earned in 10 months. And then one day you give 1000 and wait for it to be returned to you and then bam but they didn’t return it !!! Certainly not nice and at least you will be upset!
And some manage to invest all their savings and be left without them for the first time! Exactly, that there are too big risks! And the game is hardly worth the candle!
Let’s look at the same option. You did not give 1 debt in 1000, but let’s say 1000 debts for 1, say, a dollar. In a month, out of 1000 creditors, 998 have returned their debts and 2 have not. Well, not nice of course, but you got your $ 1000 back and earned $ 48. Slightly less than in the first case, but not so much less, and the chance that all 1000 borrowers will not pay you back is equal to the chance of winning the lottery! That is, it is negligible.
The second point that I would like to mention is why those who have taken a loan will want to return it. How many of my acquaintances who are engaged in private entrepreneurship sometimes need small amounts for a short period of time, say, 2 weeks. This is normal! But go to the bank and ask for another $ 200 loan??? Bullshit!
They usually have a lot of loans because everything is invested in the business, for example, one friend sells bed linen, so he bought bed linen for a huge amount, he went to make a purchase in the expectation that this month he will sell, say, 500 sets and sold 450 and it is not enough for him to issue a salary to 1 employee, for example. And the bank has already taken a loan. Where should he run? Or how will his work commute to work and what to eat?
Begins to run on friend’s acquaintances to borrow well, the system that I am talking about today is designed for such people. You have a business and you want to constantly be able to borrow money. Any bank and this system maintain a credit history. The worse the credit history or the shorter it is, the higher the risks of giving you debt, and the higher the interest at which they will want to lend you. After all, it is logical that he delayed the payment or you don’t know anything about him, you won’t give him a loan at 5% like everyone else, but you’ll say ok, I’m not giving 100 bucks, but 20 and not at 5%, but at 15%.
He will ask “why?” and you answered him “Vasya, who are you? Do not like to go look further! “Naturally, our “Vasya” will take it. There is nowhere else to go everywhere, they answer like that, but having returned the debt on time and with interest the next time he will say “come on, I returned it last time, let me take it at 12%, you know me! I will definitely return! “In principle, with a simple example, it looks like this! =)
And now, after reading this, and having figured out what’s what and how much, let’s talk about the system itself about which I want to tell you.
In order to give a loan, you need to at least confirm your account. quite simple registration and adding one of the social networks, the best option would be to immediately register an account by mail from google (Gmail) and link the google social network to Sazu + this will be enough! You can also confirm your phone number, an SMS will be sent to the number and just enter the code on the site.
To take loans, you need to fill out a profile as much as possible. Fill in more, more credit you can take, and faster your rank will grow in the credit system (about ranks will be lower). Without fail, you will have to confirm your ID or, more simply, send a photo of an identity document. You also need a document confirming your address (registration, invoice for a payment in your name, etc.). These fields are required. Without confirming them, you will not be able to borrow.