I'd like to apply for a smallbusiness loan.

Whether people will continue to loan them money.

Well we learned what happens.

What are you carrying?

I'm pulling out of his scheme.

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.

And today, less than five years in,

And so that cash ended up here.

A retail merchant buys wholesale and sells retail.

We're now moving into East Africa.

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

It's fun. Carl, this bank traditionally has never given out small loans.

The realtor figures out, well look after all is said and done you try to sell it for more than your loan amount but you are not able to you are getting really low offers

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

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

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.

And if they default on it, I actually get an asset that's probably worth more than the loan amount, and I can auction that off and easily get my 500,000 back.

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

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

Because it is actually a long term play.

Retailers are down 20 .

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

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

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

The standards for getting a loan went lower and lower.

Right?

They won't sell clay. Can't build models without it.

His assets were auctioned off

So this is the treasury yield curve.

It is generally true that if the money supply and the money supply is more than just the amount of dollars that are printed.

The money which people can take has lower interest rate, people can repay it without fear.

Joint guaranty for loans is more than an enterprise, right?

You can kind of say they keep on renewing those loans.