Kiva Lending Team: Income-Producing Durable Asset Lenders
We loan because...
We want our loans to have the maximum possible impact. We favor loans at least a portion of which will be used to buy an income-producing durable asset. We tend to believe that the first priority is to secure on-going reliable income, because it makes other good things possible.
For our purposes, an "income-producing durable asset" is defined as any asset that will continue to generate income for a long time after the loan that was used to purchase it has been paid off. This description would not be used to describe a loan only for materials consumed during production. For example, the Income-Producing Durable Asset description would be used for a sewing machine, but not for cloth and thread. Dairy cattle, beehives, fruit trees, nut trees, etc., would qualify, because they continue to produce income year after year, but seeds and fertilizer for one year would not qualify. The use of the item, not the item itself, would determine whether the Income-producing Durable Asset description is appropriate. Computers would qualify, if they are to be used directly to generate income, for example by running computer games in an entertainment center. A blender would qualify if it would be used to make juices for sale. However, the Income-Producing Durable Asset description would not be appropriate for either of these items if they were bought for personal use.
This team was formed to facilitate communication between lenders who prefer to make loans to buy income-producing durable assets. It is not expected that team members would make loans for this team-- teammates are welcome to find loans using this team, and still credit their favorite team elsewhere when they make the loan.
Longer-Range Team Objectives:
1. Gauge how many lenders are interested in this type of loan. Membership in the team indicates this interest, so please join if you think that these loans are a good idea.
2. Endeavor to get an “Income-Producing Durable Asset” tag created by Kiva. The creation of this tag has already been requested.
3. Lobby Kiva, if it should become appropriate, to create an “Income-Producing Durable Asset” loan attribute. Two mouse clicks would create a list of the loans that we want.
Team members use our site to post the Income-Producing Durable Asset loans that they find. They will also tag the loans, assuming that the requested tag has been created.
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