At "risk relitive" rates, you are going to be charging some people payday loan level rates. Most businesses fail. This, I think, is the problem with the "micr

At "risk relitive" rates, you are going to be charging some people payday loan level rates. Most businesses fail. This, I think, is the problem with the "microfinance" industry. Either you are losing money on the loans or you are charging rates that make success much less likely for your customers. I think that if you could scale-down something like ycombinator to handle local businesses, that'd work a lot better. that way the person who needed the capital doesn't end up with crushing debit, and the investor gets a cut only if the business succeeds.