Circle Lending loan

Circle Lending loan

Circle Lending, also known as Peer Lending, harnesses the power of a group to provide very small loans for home-based businesses.

The circle lending model

The circle lending model – with an engaged chairperson, monthly meetings and regular contact with our Microfinance program manager, is required.

Loans are advanced in steps, based on the entire group's successful and timely repayments of their individual loans. Networking and marketing events are provided for these groups and basic financially literacy is required as part of the loan conditions.

History has shown that lending circles have a natural lifecycle, and after several loans, groups begin to wind down. Because loans to this point have been personal loans for an informal business purpose, circle lenders will graduate out of this lending into one of two other programs:

  • Personal loans
    Members happy with both the size of their loans and the informal nature of their business, can pursue individual personal loans (as long as the credit and income requirements are met).
  • Be My Own Boss loans
    Members who want to grow their business and set-up a more formal "legal" business structure, will be referred to a self-employment training program or partner agency that provides business plan support, eg Small Business BC, and will become eligible for a Be My Own Boss loan.

Our circle lending loans offer:

  • Access to credit to grow your business
  • An opportunity to build your credit history
  • Banking services e.g. small business account, VISA and other products
  • Information on forming business peer groups to mentor and support you
  • Networking opportunities
  • Business skills training
  • Peer Lending program workbook

Applying is easy

 

Related links