355 Million Banked People Need Flexible Alternatives

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John has a small business venture; he sells fruits and vegetables from a distant village farm, 70 KM from the town where his target market is. While employed a few years back, he was required to open a bank account through which he would be receiving his salary. After ten years of industrious work, he quitted his job and decided to dedicate his time to his venture.

The biggest challenge John has is transporting his product to the market. Hiring a truck is quite high and eats into his profit. A friend has suggested to John that he should buy a truck which can ferry his own produce and rent out to get some extra income.

Unfortunately for John, he hasn’t saved enough to buy such a vehicle. So he thought it’s a good idea to secure a bank loan.

In the Face of an Imminent Rejection

What John doesn’t realize is that the bank where he has account has strict loan policies. Like many other traditional banking institutions, John’s bank goes through its borrowers’ bank records and uses past data for credit rating. More so, their loan limits start low and only after years of saving and sound credit history can you get a loan enough to buy a truck.

He is told that he does not qualify for any loan at the moment but should he register his venture and start depositing all proceeds into his account, then he could be eligible for the bank loans in 2 to 3 years.

Losing hope

John has decided to continue using hired transportation although he agrees to the manager’s recommendations. He is on the brink of losing hope based on two simple facts he gathered:

  • Bank credit lines have dried up recently because most SMEs have a low customer base
  • Upgraded lending guidelines have locked out many borrowers such as himself.
Looking for alternatives

John’s case is no different from the many small businesses that are forced to secure alternative financing. Innovative peer-to-peer microfinancing is the best among many alternative options.

  • Peer-to-peer lending works on platforms such as AssetStream. Through the AssetStream platform, John can post the loan amount he requires, and the system may automatically match him with specific lenders on the platform.
  • There is also another matching system where the lenders themselves sift through the available loans and decide who to loan to. On this platform, several lenders pool their funds to finance a single loan; hence it is possible for John to get the desired loan in a short time.

John and many others like him will have a fantastic opportunity to join AssetStream’s friendly environment for lenders and borrowers.

Don’t lose hope, there are other ways around your issue!

AssetStream has a noble mission of helping unbanked obtain much-needed financial services. But banked people can also see the apparent issues with the current loan management system. Join now and introduce yourself to the future of microfinancing.

Disclaimer: This is a guest article. The views, opinions and positions expressed within it are those of the author alone and do not represent those of Cryptopolitan. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.

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