HOWTO be a successful microlender

Wired has a great sidebar on successful microlending (part of a longer piece on microcredit): ten tips for successful microlending. Microlending is the practice of using the Internet to group together with other people and offer loans to worthy individuals. Microlenders use message-boards to evaluate potential loans for reliability and worthiness. It's a way to make a little money and do some good at the same time. It's a system that's been widely used in the developing world, but which is still relatively new in the US.

1. It's OK to be First
Many lenders search for loans that are close to being filled. But don't be afraid to be among the first bidders. "If you don't bid, the listing may wind up being overlooked, despite its merits," says Boon.

2. Focus on the Numbers
"Don't get sucked into storytelling," says Boon. "You will see very interesting things, but ultimately you will have to make rational choices based on the numbers."

3. Go Beyond Credit Reports
Ask for relevant information if it's not already in the borrower's profile. For example, if someone has an eBay store, and wants capital to buy more xBox 360s, ask for their eBay ID and check their seller rating.

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See also:
Does microcredit help the developing world
Wireless phone ladies of Bangladesh, revisited