Loan possible the microcredit way

Sometimes bank is not ready to give a loan. Borrowers of microcredit are typically people of low income households, who require working capital and credit. The investment you make as a social investor is usually towards the working capital of an individual whose occupation is farming, livestock rearing, tailoring or other micro and cottage industries.Microcredit organizations offer loans with term of repayment as 12 to 18 months depending on the size of loan. Only after the repayment of the first loan, can the borrower apply for next loan. 90% of investors are individuals. But contrary to what people believe, disadvantaged are sincere in repaying their loans.

Private-company credit risk shows signs of improving

Privately held U.S. companies, on average, have a slightly improved credit position than a year ago, according to new data from Sageworks Inc., a financial information company.

Using a predictive statistical model to evaluate privately held companies in Sageworks’ proprietary database, the firm found that the average probability that a private company would default in the next year was 4.40 percent for the 12-month period ended Dec. 31, compared with 4.51 percent for the year-earlier period.

Sageworks collects financial statements for private companies from accounting firms, banks and credit unions through its cooperative data model, aggregating the data at an approximate rate of 1,000 statements a day, and analyzing the performance.