I love Kiva.org don’t get me wrong. But they’re a case where their popularity may exact a price.
I went there the other day to recirculate some money that had been paid back and all the businesses were funded!
That’s a bit like going to Starbucks to learn they’re out of coffee.
Fortunately they had more available businesses today…9 for now. And businesses were being fully funded in about 4 hours!
The problem’s caused, they say, by Oprah’s popularizing the site not to mention the book “Giving” with Bill Clinton listed as the author.
Nearly 8000 lenders joined in the last week as a matter of fact.
Yet though there were some opportunities to lend, they were not from the organizations I prefer to do business with and I’ve become rather picky after 2 of my loans were refunded due to problems with the intermediary.
So I’ll probably put off lending today. The problem is by going back frequently and being frustrated, what are the odds, I’ll just give up and stop wasting my time?
I think Kiva really needs to have a system where, if I prefer to work with “ABC” lender I’m notified of a lending opportunity with them.
There’s another problem potentially.
In my opinion, now that they’re flush with cash to lend, the existing intermediaries on the ground will be asked to provide more lending opportunities. A fine balance will have to be maintained to provide lending opportunities for Kiva lenders while making sure these are viable business opportunities that can repay the loans.
It’s a bit like the bankers who only make money when they make loans. So when the good credit risks run out, then it’s time for the subprime risks.
And we know how that’s going right now.
Kiva of course is in this to make a difference not a fast buck, but the principles are the same don’t you think?
Of course they could have lots of prime lending opportunities at hand who had to be turned away before so the only problem may really be just a time lag in getting them listed. That’s what I’m hoping for.
I wish them well and will lend whenever I can. But they are potentially at a point where they are facing challenges due to their own popularity. That’s a good and bad problem to have.
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