Chingo De Dinero

I recently was in a discussion with two people, and the great idea of Micro Lending was brought up. I could not resist, but as their opinion on Payday Lending (As an owner of FCFS, I clearly support Payday Lending). They began by telling me how bad Payday Lending was, and how good Micro Lending is, and one should be band, and the other should be expanded. So of course, I asked questions and made them contradict themselves, but still in the end, they were “teaching” me about the difference.

Really, if you break it down, they do the same, offer small loans to those who are unbanked, pre-bankable, or any other term you have to say they do not qualify for a bank loan, for whatever reason. The only difference I can really find is that one is a business and the other is a charity (although they like to talk about how it is good business, but will always back down if you talk profit, and real businesses doing it). So, from this, I ask which is better, and I will answer time and time again, if we want it to last in the future, make it a business. Charities are fashionable, but are quickly dropped, which will leave these poor people not available loans. If you make it a business, I am sure companies will be clawing to give loans, and will even compete on prices to give the loans, imagine people competing to give loans to the people who are turned away by a bank, and that is not good?

In the end, why not have both, your charities and the businesses, if people really think cheap small loans are right, let them donate to the charities, not reason to limit the business and deny these poor people loans.