There are two concepts in Circle Lending. The first is a time-varying rate of interest that applies to a fixed pool of money lent by the Circle Lending Company to its members. This rate of interest generally ranges from seven percent to twelve percent over a specified period of time, with one exception that applies to the late fees and penalties that can be assessed on a customer who is delinquent on their loans or payments.

The second concept is an agreement between the Circle Lending Company and its members that provide the lender with permission to use the pooled money to make loans to its customers. If the customer completes a minimum number of loans or payments to meet the minimum requirements, the Circle Lending Company agrees to a certain percentage of the amount borrowed by the member. Members are also required to keep a record of their repayments and covenants not to lend more than the agreed amount.

With Circle Lending, the rules of the game vary by customer. What is standard for one customer may not be applicable to another customer.

A customer that does not have a representative or advisor to explain the situation to a HBR Case Study Solution is probably not in a good position to help determine whether Circle Lending is right for them. The case study should be addressed by a qualified advisor for this purpose.

It is important for each customer to understand how Circle Lending works. As part of the discussion for the case study, the Circle Lending advisor must explain the benefits of the Circle Lending Program. The benefits will include: allowing customers to borrow small amounts of money with no fees; offering small loan amounts and fixed payments over time; allowing customers to borrow money in small increments while keeping those amounts low; and allocating most of the cost of the loan to the interest and origination costs, so customers are not paying the full amount of the loan. Circle Lending is different from other loan programs, such as conventional loans, in that it offers two hundred dollars per month per person, which is similar to how many members can receive a smaller loan.

Because Circle Lending is a very new program, only one advisor can be assigned to each Circle Lending customer, so each customer is assigned an advisor. This means that there are two advisors for each customer. This would cause problems if there were multiple Circle Lending customers with the same affiliation.

In order to avoid conflicts of interest, the Circle Lending company has created two categories of Circle Lending customers. One is referred to as a “No-Loan”, meaning that the customer is not allowed to borrow money from Circle Lending, and Circle Lending considers the customer to be an independent financial resource.

The second category is referred to as a “Limited-Loan,” which means that the customer is allowed to borrow money from Circle Lending but is limited to borrowing only from the same Circle Lending Company. This means that the Circle Lending Company is not obligated to provide the customer with the money; Circle Lending may charge a fee for arranging the loan. Circle Lending also reserves the right to charge a non-refundable deposit from the Limited-Loan customer.

The Circle Lending case study should answer the following questions: How much money will a Limited-Loan customer borrow from Circle Lending? What is the total amount of money borrowed from Circle Lending by each customer over time?

These are questions that need to be answered in the Circle Lending case study solution. Circle Lending provides numerous advantages that make Circle Lending an attractive option for many customers. However, Circle Lending’s first advantage is that Circle Lending members do not pay a full application fee to apply for Circle Lending.

Second, Circle Lending does not charge a late payment fee to its customers. As customers complete their loan and pay the Circle Lending Company the balance of the loan at the time it is due, they do not pay any fees.

Circle Lending case studies that are provided by Circle Lending should include a statement that the case study uses information provided by Circle Lending and the study does not represent the opinions of Circle Lending. or its employees. Past performance does not guarantee future results.