And it's really time we start thinking more creatively about how they can be fused.

Well, someone has to give you we could call it a bridge loan because they're giving you a financial bridge from here to where you need to go.

Well we learned what happens.

Whether people will continue to loan them money.

And so with patient capital from Acumen and other organizations,

And the corollary of more people willing to lend, is you that the actual standards go down.

What are you carrying?

I'm pulling out of his scheme.

lying about my balance sheet, then I actually am good for the money.

They are too far in debt to get the small business loan.

And today, less than five years in,

And so that cash ended up here.

And then if we go to, let's say, 2003.

We're now moving into East Africa.

Let's just show an example of how the actual mortgage works.

At the time, there was a microlending group in the village that gave her a 65 dollar loan.

What I want to do in this video is go over the math behind a mortgage loan.

97 percent of all the scheduled repayments came back to us on time.

It could be patents, it could be licenses.

Now, if you don't trust someone, you place restrictions on them, right?

So once again, it's just a loan to someone else.

Well, they lost, by entering into this transaction, essentially, they lost whatever equity they originally had in their house.

The stability this provides is giving the farmers the confidence to invest.

The bank accommodated the company with a loan.

One, two, three enterprises are put together to repay loans.

And that's the best they could do.

But the banks are still pretty confident then, and they're like, no.

Let's see what happens when n is equal to 2.

So what is our payment amount?

Papa went to the bank to ask for another loan.

So that's a very handsome return.

We can start building local distribution, and actually, it can cost the public sector much less.

So the risk managers within the bank think they have a great deal.

And to do that, let's get a little bit more abstract.

The least important form of capital, in this project, is financial capital money.

I don't know what other of my assets are going to fail.

And she wants the infrastructure it is nice with a paved road.

The standards for getting a loan went lower and lower.

Right?

Because all the banks are getting scared now.

We realize it was just because financing got easier.

And I'll be willing to give this as collateral.

So how do you get past a liquidity crisis like this?

You could just say what you made.

So this is the treasury yield curve.