Frequently Asked Questions
Q. What are family and friend loans (person-to-person lending and loans)?
A. The lender lends money to a borrower based on their pre-existing personal, family, or business relationship. Lenders can charge below market rates to assist the borrower and mitigate risk. Loans can be made to buy homes, personal needs, school, travel or any other needs. Please refer to Wikipedia for further examples:
Person-to-person lending
Q. What is Circle Lending?
A. Circle lending is the act of lending and barrowing between social networks (friends, family members, business colleagues, etc.) without the use of a traditional financial institution. These social networks determine, arrange, and manage the terms and repayment of the loan. Circle lending offers people who have little or no credit and assets, the opportunity to barrow money, through the help of their social network. Circle lending is often used to help fund school tuition, down payments on a house or car, start a business, and much more.
Loan management tools, such as ZimpleMoney, create a more structured process for lending and barrowing money among social networks. These tools make it easy to set up, document, administer and manage the loan- without all of the awkwardness that comes with lending to friends and family. Loan management tools allow lenders to calculate interest, customize terms, send payment reminders and notices, and collect and track payments.