Inner Circle Go Around

Collaborative Finance

Group Go Around Proposal

This is a proposal for a Tier 3 Lending Circle or Money Go Around.Proposed start date November 20, 2015.
Proposed cycle:
Nov/2015 T.Owens, Dec/2015 S. Denson, January/2016 L. Bray, February/2016 L.Hurst, March/2016 L.Koboka (April sharing cycle starts again with $30).
$20 a month
$80 total contributions per cycle to designated member.

Lending Circles or Money Go Around generally refers to a group of people who pool money on a regular basis, and provide rotating loans to circle members.A small group of people come together, agree on how much they will put into the general fund each month, and they hold each other to it. Let’s say a group of five people agreed to contribute $10 per month for five months, at the end of each month, one person from the group gets $50. You keep going until everyone has had a chance at the $50. In our groups case we would contribute $20 into the circle and each month a member would be paid $80. We can increase it with the next cycle after the first go around. A lending circle of this model can provide immediate access to funds in times of need. Lending circles also ensure that our dollars are used to instantly benefit members of our community, rather than going to a large bank that likely invests the funds in Wall Street. Lending circles offer a way for small groups to be their own banks, in essence.There is an organizer for the group who makes sure everyone makes their contributions on time, collects the contributions and also distributes payments to the members and keeps track of whose turn it is to receive a distribution.

An Age Old Practice.

All of these lending circle models are an age-old practice used by various societies around the world. They are referred to as tandas or cestas in Latin America, susus in West. Africa, society in South Africa, lun-hui in China, and paluwagan in the Philippines. Immigrant communities have often turned to informal lending circles as a social activity and alternative to unfamiliar and inaccessible financial institutions.

Why a Money Circle?

The money circle is a way of doing a small business of sharing with each other.
This will deepen and solidify our commitment to community and sharing.
The money circle will help in times of need, emergency, small endeavors and cash in hand.
The money circle is a trust based system and it builds trust.
This is an age old practice that helps women all over the world to this day.

Collaboration and Sharing to Uplift Community

Money Circle FAQ

1. Do I have to join the money circle.
No. It should be a want to preferably rather than a have to.
2. What if I cannot afford my payment for the month?
Borrow from someone, just have it!
3. What if I want to quit.
Make sure that you are certain about being part of this sharing because we ask that you quit after a cycle which is 5 months.
4. What is the order of the circle and how was is chosen?
The order of the circle was chosen randomly and is given above.
5. Who is part of the sharing circle?
Only Tier 3 members (Luyanda, Tywane, Leslie and Sharon)
6. When do we pay into the circle?
The circle is monthly on the 20th of each Month.
7. When does the first cycle begin?
The first cycle begins November 20, 2015.
8.Can I make the $30 payment to the circle late?
No. It must be the 20th of the month.
9. How are members held accountable?
The mutual aid group operates informally. As such, members who violate the group’s trust will be letting the group know that they cannot be trusted for future financial endeavors.