Paradigm shift on funding business in the informal sector ⚡

Informal sector is the backbone of our economy yet somehow funding this business is often met with resistance. securing a business loan from a bank takes time, you need to show traction, offer collateral and other support documents. Fintech solutions are bridging this gap by reducing the number of documents required with faster loan execution; it a risky move but still the fuel the informal sector requires to keep moving. We have start-ups with operation model like "take investors money give it out to clients as loan, use the interest rate as the cost of operation and business revenue, keep the cycle going". This both helps in job creation and offering the working capital on this businesses. Banks and VCs are often the investors on this cycle in the top of the food chain, they are the big boys as far as Wall Street goes and that okay but a paradigm shift that enables the guy on the far end of that food chain to invest back on the immediate business that is funding them "fintech solutions" in this case, can help reduce the chain and have this start-ups stand alone as lending institution that doesn't require much bailing out by the banks. Not to mention the reduction of interest rate on the loan they take from the banks and then push that on their clients downward. By breaking that chain in half the kiosks and mama bonga will pay small interest rate, charge less on whatever they are selling, their business will flourish and they can reinvest their earning back to the immediate business that funds them and as the cycle continues the economy expand as well. cheers🥂