Scooters, coracles, beasts of burden and even crop stocks are providing the poor in the Asia Pacific region with new business opportunities. It’s a huge leap of faith for usually stayed banks and finance companies, but ‘movable asset’ loans are taking off.
Intangible assets, goods that are easily hidden, lost or sold, present unique risks for financiers. Since the global financial crisis the appetite of bankers for taking unnecessary risk has significantly reduced.
To overcome this, countries wanting to offer movable asset loans are passing legislation to set up “secured transaction” registers, one lender in PNG – Credit Corporation – secures 90 percent of its loans against movable assets and all of those loans have gone to Indigenous entrepreneurs :: Read the full article »»»»