Usually, for most people, the words interest rate, loan, or investment don't come up within the first 5 minutes of a first date. If they do, you could be in for a bit of a boring evening (unless of course, you're on a date with Warren Buffet).
There were times when it was easy to draw a line between left-wing and right-wing stances. Nowadays, the division is not as clear. Geert Wilders, for example, wants fewer Moroccans in the Netherlands, but at the same time he wants to make health insurance cheaper for people who can barely afford it. And what about the left-wing; does it still consist of hard working laborers or is it now owned by the new deep-pocketed elite?
At Lendahand, people can invest in our local partners (banks and non-banking financial institutions) or directly to entrepreneurs through crowdfunding. These investments have interest rates of approximately 2.5 to 8 percent annually. As you can see, this is quite a difference. The higher the interest, the higher the price that needs to be paid. But the price of what, exactly?
Recently I asked the following question in the office: assume you are really strong, you tear a phonebook in half and stack the two halves on top of each other. You tear the stack and put the new parts on top of each other again. Once more, you tear and stack. You get the idea. Now the question was: how many times should you repeat this process in order to be able to jump off the stack onto the moon? My colleague’s answers ranged from 5,000 to 1,000,000 times. Before reading on, how many times do you think you would need to tear and stack the phonebook?
Social impact investing can provide a range of returns, depending on the type of investment. Some online platforms offer equity-based investments and some operate on a lending based model, but these models can vary depending upon the types of businesses they work with.