Alvaro knows very well the law of earning a living as he has more than 20 years of experience being self-employed. Currently, and after his previous tailoring business went bankrupt because many times his customers didn't pay him, he set up a clothing sales business with the help of a friend in downtown Medellín. This entrepreneur needs a loan to buy a variety of merchandise so he can have more products to offer his customers and improve his sales.
Alvaro conoce muy bien la ley del rebusque, pues desde hace más de 20 años se ha dedicado a trabajar como independiente. Actualmente y después de quebrarse en su negocio anterior de confecciones debido a que sus clientes en muchas ocasiones no le pagaron, con la ayuda de un amigo puso un punto de venta de ropa en el centro de Medellín.
Este emprendedor necesita de un préstamo para comprar diversidad de mercancía y así ofrecerle otros productos a sus clientes y mejorar así sus ventas.
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.