It wasn’t long ago that the Internet took the world by storm, forever rearranging the financial landscape in its wake. Where once there were only traditional banks with men in suits to explain why you need a higher credit rating to expect the sum of money you’re requesting, there are now websites dedicated to connecting people from all over the world with the resources they need to be successful.
Nearly everything has been changed since digitalization and globalization took hold in the past decade. People who once had to visit loan sharks for cash in an emergency can now visit safe and expedient websites like https://www.Wonga.ca for payday loans that are deposited directly into the borrower’s bank accounts. Students who years ago could only go to school if their families had the means to send them can seek financial aid from the government and get the education they need to be successful. There are a million ways that lending has been changed by the Internet, but some are certainly more remarkable than others.
- Kiva – Since their founding in 2005, Kiva has worked to connect lenders and borrowers from around the world. Users can easily donate, even a small amount, and then receive updates throughout the life of the loan on what the borrower is using the money for. When the borrower eventually begins repayment, the money is dispensed into the lender’s account and is able to be used for another loan, donated to Kiva (seeing as it’s a non-profit organization), or withdrawn to be spent on something else entirely. Kiva operates to help those in dire need get back on their feet, especially in remote areas of the world.
- Kickstarter – Kickstarter operates under the idea that a very small amount from a large amount of people is all that it takes for a person to earn the money they need. Usually used for creative purposes like creating an album or starting a new business venture, Kickstarter allows people to make donations and receive something back, whether it be inclusion in the liner notes or a a copy of a book once it’s been self-published. Donors receive bigger gifts depending on the amount they pledge which can be virtually any amount they choose.
- Venture Capitalism – Venture capitalism began at the onset of the Internet craze when companies were finding that they could radically change their game plan by taking their business online. An investor, someone with enough money to spare, donates the funds when they stumble across someone who has an idea they think could be incredibly successful. They receive a stake in the company in exchange for their start-up money and when the business is successful enough, they are able to make their money back and then some. There are now a wide variety of venture capitalist competitions where groups with unique ideas can give their pitch in hopes of being chosen as the next funded project.
While traditional loans are still available, out of the box thinking has created a host of options for people with the right ideas and a lack of funding.