As part of upholding its stellar service to people everywhere, Brennan & Clark has shared a number of highly-informative blogs and articles on debt, credit, collections, and everything in between. On this blog, the firm focuses on microlending and what people need to know about it.
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Image source: themindfulword.org
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Also known as microcredit or microfunding, microlending’s popularity skyrocketed in the ‘80s. With the subsequent boom of microenterprises in the decade (mostly run by people who didn’t have funding and needed to start over), the public’s opinion of microlending seemed to sway more towards the positive side. However, it has been questioned throughout the years.
An issue was raised on how most people who were lent money through microlending never really used or intended to use the funding for a business. Microlending affords these individuals with a brief reprieve from poverty, but also increases their expenses and deepens their debt through interest. As one critic puts it – microlending really doesn’t do poor people any favors since it inadvertently teaches them to spend more rather than save money. Ultimately, people in the lower income class don’t go above the poverty line.
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Image source: wsj.net
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But not everyone who resorted to microlending sank deeper into debt. For some people, microlending funds were used to start small businesses (which is the ideal route, Brennan & Clark notes), thus breaking their own vicious cycle that many people fell into.
Brennan and Clark is a business collection agency that has been operating since 1980. A member of the Commercial Collection Agencies of America, the firm offers unparalleled service as well as the most comprehensive guarantee in the industry. For more information on the company, visit this website.
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