Microloans, also known as microfinancing, peer-to-peer lending, and crowdfunding, started out as a means for individuals, such as impoverished borrowers who lack collateral and underprivileged women in third world countries, to provide for themselves. The way microloan markets operate is quite...

With banks still facing challenges, alternative sources of credit are likely to play an increasingly important role in financing small businesses. The authors describe what ACCION USA has learned as its approach to microlending has evolved.