Originally Posted by
maulah
I just stumbled upon this thread and found it to be very interesting. I am still trying to go through so many posts. Can someone explain to me the risk factor. What are the chances that you will lose money. What if the lender defaults? How are you paid back such bad loans?
If the lender defaults or (as seems to be more common) the local partner has difficulties you may not get your $25 back.
It hasn't happened to too many people here, but it can happen. You can lessen your risk by using 4 and 5 star partners and if lending more than once, making sure you lend in a number of different countries.