Hacker News new | comments | show | ask | jobs | submit login

Why not just give the entrepreneurs the $200?

The money they would be paying back they could use to build up their business.

I doubt anyone would do this investment for a return.




Hi wehadfun, that is a valid question. There are a few reasons we facilitate loans instead of gifts:

1. Loans once repaid can be lent out repeatedly, thereby helping many more people.

2. Repaying a loan at a reasonable interest rate puts lender and entrepreneur on a more equal footing, and is therefore more dignified for both.

3. Loans encourage a proactive and independent mentality on the part of the entrepreneur, rewarding success rather than neediness.




Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | DMCA | Apply to YC | Contact

Search: