In [[The Personal MBA]] a //loan// is an agreement to let a borrower use a certain amount of resources for a period of time in exchange for a series of payments over a predefined period of time, equal to the original loan plus an interest rate. It is one of the [[Twelve standard Forms of Value]] (Form of Value #9 of 12). Loans allow people to benefit from immediate access to products or services that would otherwise be too expensive. Loan are interesting to the lender because they provide a way to profit from excess capital.

!Key Points:
* A loan is an agreement to let a borrower use a certain amount of resources for a period of time in exchange for a series of payments over a predefined period of time, equal to the original loan plus an interest rate.
* The keys are:
** Have money to lend.
** Find people who want to borrow that money.
** Set an interest rate that compensates you for the loan.
** Estimate and protect in case the loan is not repaid.
* Loans allow people immediate access to products that they couldn’t purchase outright.
* Loans are beneficial to the lender by benefiting from excess capital.
* It’s critical to identify how risky each loan is, and take the appropriate steps to protect the loan going sour.
!Questions for Consideration:
* Does delivering value via lending assets to others make sense for your business idea?
* If so, what do you need to plan for to make it successful?

Source: http://book.personalmba.com/loan/
bag
mbi_public
created
Thu, 20 Jan 2011 21:06:26 GMT
creator
dirkjan
modified
Thu, 20 Jan 2011 21:06:26 GMT
modifier
dirkjan
tags
Term
The Personal MBA
creator
dirkjan