Met a borrower, the US loan mentioned above. I was also the first "walk-in coffee customer" at that establishment.
work up to $250 of capital loaned by the end of 2010. couldn't do this one on time.
My portfolio management philosophy
loan wisely so the capital is preserved
This may seem out of whack. Why is capital
preservation #1 and helping people #2? It's a goose
that laid the golden eggs scenario. If the loan capital is gone
then I have nothing left to help people.
Since no interest is paid to Kiva microlenders there is no compounded
increase in working capital. This makes stewardship of the capital
critical; unless you pump more into it the amount can only decrease
due to the (approx 2%) default rate. So I pick lending orgs with
acceptable default rates, and prefer loans that will start paying back
sooner and with lower delinquency rates.
To help keep my head wrapped around it, I think of it like running a microfoundation.
How I pick borrowers
risk rating of the local lending partner. If I lose my working capital then I won't have money to lend. Easy peasy.
something in common: raises chickens, cows, goats. Uses Linux. Stuff like that.
in a geographical area I would like to support. So far I haven't found anything in Liberia or Iraq but I would like to (update: found 'em!) I am also interested in lending to the poor in the US, but due to the standard of living here the small amounts I can lend don't go as far.
working in a field I find particularly human (baking, barbering, teaching) or capitalistically productive (retail, repair, transportation)/