Double your return.
At Lendahand it is possible to lend money to entrepreneurs in developing countries, usually through solid financial intermediaries and sometimes directly. With your loan an entrepreneur is able to develop and grow his company and in return you will receive a 3-6% annual interest on your investment. That is what we call double return.
The best stimulus for an economy is a strong middle class. In developing countries small and medium sized enterprises (SMEs) could drive economic development. Investments in these companies have a job-creation effect and ultimately lead to reduced poverty levels, which in turn leads to better medical care and education.
The problem is that companies in developing countries often lack access to finance. Banks tend to lend to large companies and have restrictions that prevent SME companies from receiving a loan. On the other hand, microfinance institutions often find these companies too complex. There is a funding gap for SMEs that we call "the missing middle".
This is why Lendahand offers a solution via crowdfunding. Entrepreneurs are able to get financing via our local partners and in turn they upload their company profiles to our website for financing. The local partners cover the risks of non-repayment and currency fluctuations.
Invest responsibly. Inform yourself about the risks.