1

Kiva Zip Onboarding
for Borrowers
Winter, 2013
Kiva Zip Overview

2

Kiva Zip is a website that enables financially excluded and
socially impactful entrepreneurs to acce...
Our Requirements
 The borrower's debt : income ratio must be less than 30% (excluding a mortgage)
‒ Specific details arou...
Trustees

4

You must be endorsed by a Trustee in order to qualify for the Kiva Zip program.
A Trustee is meant to add cre...
The Process
1) Give us the name, contact information, and organization name (for
organizational Trustees) of the Trustee t...
Next Step

Please submit the following information about your Trustee by
completing this form and we will send an invitati...
7

Appendix
Email Template for Approaching a Trustee
Hey Blakely,
I have an opportunity that I'm looking for assistance with and was h...
Debt to Income
Monthly Debt to Income Ratio (DTI)
 DTI is Monthly Household Debt Payments divided by Monthly Household In...
Other Financial Qualifications
Past Due Debts
Kiva Zip borrowers should have no debts over 30 days past due. If this is a ...
The Trustee Profile

11
The Endorsement

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The Loan Profile

13
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Kiva zip onboarding for borrowers (5)

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Kiva zip onboarding for borrowers (5)

  1. 1. 1 Kiva Zip Onboarding for Borrowers Winter, 2013
  2. 2. Kiva Zip Overview 2 Kiva Zip is a website that enables financially excluded and socially impactful entrepreneurs to access 0% interest loans up to $5,000 that are crowd funded online. 0% interest business loans First loan can be up to $5k. Subsequent loans up to $25k Up to 24 month term, repaid in regular weekly or monthly installments via PayPal We do not look at credit scores and we make loans to startup businesses Easy online application Crowdfunded by individual lenders around the world, each lending small amounts Average number of lenders is 150 per loan 98% of businesses have successfully raised funds Grace periods available for startups and agricultural businesses For more information about the Kiva Zip program, check out this presentation.
  3. 3. Our Requirements  The borrower's debt : income ratio must be less than 30% (excluding a mortgage) ‒ Specific details around the debt : income ratio can be found in the appendix  The borrower cannot have any past-due debt (30 days past due) ‒ Specific details can be found in the appendix  The borrower cannot be in foreclosure, in bankruptcy, under any liens, or subject to a lawsuit  The borrower must have a PayPal Account or be able to create one ‒ This is how the loans are disbursed and paid back  The borrower must have a household annual income under $100,000  The borrower must be over 16 years of age You can complete our financial capacity assessment to check if you meet our requirements: https://docs.google.com/forms/d/12258mbVcgakDXAaD9SSjs-q5tdfkpytrtu8bTeGCt50/viewform 3
  4. 4. Trustees 4 You must be endorsed by a Trustee in order to qualify for the Kiva Zip program. A Trustee is meant to add credibility to you as you fundraise on our website, by vouching for your character and business. Individual Trustees Organizational Trustees  Allow you to qualify for a loan up to $2,500  Allow you to qualify for a loan up to $5,000  Can be a mentor, professor, advisor, accountant, etc.  Can be any organization that you have a relationship with that can vouch for you on a personal and professional basis  Cannot be a family member or someone in your business  Cannot financially benefit from endorsing you for the Kiva Zip program Trustees can be startup incubators, shared workspaces, neighborhood associations, economic development corporations, small business development centers, SCORE advisors, religious groups, non profits, other small businesses, student groups, professors, stores you sell your goods in, suppliers etc. To see the different Trustees Kiva Zip has partnered with you can visit: zip.kiva.org/trustees
  5. 5. The Process 1) Give us the name, contact information, and organization name (for organizational Trustees) of the Trustee that you want to endorse you -- see next slide. 1) We will send your Trustee an invitation to sign up. 2) Your Trustee will complete an online Trustee profile and write an endorsement for you. 3) Once your Trustee completes their endorsement, you will be sent a loan application by email. The loan application includes private financial information and your public profile on Kiva Zip. 4) We will review your loan application and post you to the Kiva Zip website where you will begin fundraising. If you and your trustee are diligent and efficient in completing the applications, you can be posted to the Kiva Zip website within a week of beginning this process. 5
  6. 6. Next Step Please submit the following information about your Trustee by completing this form and we will send an invitation to your Trustee. We will notify you once we send the invitation to your Trustee. Once we do, it’s important that you follow up with your Trustee to ensure they complete their application and endorsement. 6
  7. 7. 7 Appendix
  8. 8. Email Template for Approaching a Trustee Hey Blakely, I have an opportunity that I'm looking for assistance with and was hoping you might be able to help me out. Kiva is a non profit that helps small business owners with 0% interest loans to help them grow their businesses. The first loans are up to $5,000 with opportunities to get bigger ones down the line. In order for me to qualify for the program I need a recommendation from someone like you that can vouch for my character and my business. There’s no financial or legal responsibility – you would just need to set up a profile on Kiva Zip as a Trustee and you would build a lot of recognition and exposure through it. This would mean a lot to me and my business and I would be so excited if you could help me out! This wouldn’t be too big of a time commitment, but if you feel like you really just don't have the time I would totally understand too. Here’s a presentation (http://prezi.com/rmuvoa5my87b/?utm_campaign=share&utm_medium=copy) about the program and you can also check out their website at www.KivaZip.org. If you can do this, I will pass your information to Kiva and they will send you an application to get started. Thanks for taking your time to check this out, 8
  9. 9. Debt to Income Monthly Debt to Income Ratio (DTI)  DTI is Monthly Household Debt Payments divided by Monthly Household Income. This ratio must be under 30%.  Monthly debt payments include monthly payments on credit cards, car loans, student loans, medical debts, bank loans, and all other monthly debt payments (excluding mortgage payments).  Monthly household income includes all of your take home pay from your business (not your business revenue), as well as any salary either you or your spouse/partner earn from other jobs.  Kiva Zip borrowers monthly household debt payments must be less than 30% of their monthly household income (excluding mortgage payments).  This website helps a user to calculate their own DTI ratio: http://www.bankrate.com/calculators/mortgages/ratio-debt-calculator.aspx 9
  10. 10. Other Financial Qualifications Past Due Debts Kiva Zip borrowers should have no debts over 30 days past due. If this is a hurdle, then the borrower should clear these Past Due Debts before applying for a Kiva Zip loan. Special Cases  Medical Debt: We will allow $1,000 of past due debt from medical expenses  Disputed Debts: We will allow disputed charges on a borrower's credit history up to $1,000 Bankruptcy, Foreclosure, Liens, and Lawsuits Borrowers undergoing a bankruptcy, foreclosure, under any kind of lien, or the defendant in a lawsuit cannot be posted. Past bankruptcies and foreclosures do not disqualify you from the Kiva Zip program. 10
  11. 11. The Trustee Profile 11
  12. 12. The Endorsement 12
  13. 13. The Loan Profile 13

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