At 60 years of age, León Ángel A. knows no other trade than that of butcher. He learned his trade from his uncles when he was young. Six years ago, and after working for others in various butcher shops, he discovered that he would need to start up his own business to get ahead. With his own business, he would be able to improve his earnings, his quality of life, and that of his family.
Currently, León needs a loan to purchase stock for his shop, which will increase his sales and his profits. He is responsible for providing for a household of six.
Since León started his own business, he has found lack of capital to be a limitation. For him to get ahead, he needs to re-stock his shop each day. This causes him greater physical fatigue and creates a decrease in profits. If he cannot purchase large quantities, he does not get good prices.
A sus 60 años de edad, León Ángel A., no conoce otro oficio que el de carnicero, pues desde pequeño al lado de sus tíos aprendió de este trabajo. Desde hace 6 años y después de trabajar para otros en diferentes carnecerías, descubrió que para salir adelante era necesario montar su propio negocio, pues de esta forma mejoraría sus ingresos, su calidad de vida y la de su familia.
Actualmente, León necesita de un crédito para comprar surtido y así incrementar sus ventas, lo que se convertirá en mayores ingresos, pues actualmente es el responsable de mantener un hogar en el que son 6 los integrantes.
Desde que León creó su propio negocio se ha encontrado como limitante la falta de capital, pues para salir adelante, viéndose obligado a surtir diariamente, lo que demanda mayor cansancio físico y disminución de utilidades al no poder comprar en mayores cantidades para obtener mejores precios.
This loan is structured on Kiva as a bullet loan, which means a single payment is required at the end of the loan term. By Colombian law, Kiva's partner Interactuar is required to offer borrowers loans with a variable interest rate that fluctuates with the market rate. Because fixed monthly payments are applied first to interest and then to principal, Interactuar is unable to predict upfront what portion of each repayment would go towards the loan principal. This creates a challenge with Kiva's system, which doesn't allow for unpredictable principal payments, and can result in some Interactuar clients appearing falsely delinquent. To remedy this, the loan has an end-of-term repayment plan on Kiva, but the borrower will continue scheduled monthly repayments to Interactuar, who will then pass along the principal amount to Kiva lenders. This means that you may see repayments made on this loan throughout the repayment term, as opposed to receiving repayment in full at the end of the loan term.