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Why not just give the entrepreneurs the $200? The money they would be paying back they could use to build up their business. I doubt anyone would do this inve
by wehadfun 13y ago
Why not just give the entrepreneurs the $200?
The money they would be paying back they could use to build up their business.
I doubt anyone would do this investment for a return.
- jkurnia 13y agoHi wehadfun, that is a valid question. There are a few reasons we facilitate loans instead of gifts: 1. Loans once repaid can be lent out repeatedly, thereby helping many more people. 2. Repaying a loan at a reasonable interest rate puts lender and entrepreneur on a more equal footing, and is therefore more dignified for both. 3. Loans encourage a proactive and independent mentality on the part of the entrepreneur, rewarding success rather than neediness.