Lending, or providing money upfront with the promise that it will be paid back in full (plus interest, sometimes), is a way to help people who want to make larger purchases or investments but lack money to do so at that time. For example, a woodworker might want to make an investment in a professional-grade power saw. That woodworker could borrow money in the form of a loan, purchase the tool immediately, and pay back the loan over time. In theory, this saw would help create more business for the woodworker, and he’d be able to pay off his debt over time with ease and improve his business prospects in the long term.
While this seems straightforward, building credit as an individual person isn’t always easy. In order for professional banks to lend money to someone, that person has to engage with a professional banking service, which has associated costs and can be complicated. At WeTrust, we believe in the power of peer-to-peer lending - any group of people who trust each other should be able to come together and increase their financial empowerment.