Informal Finance
Funding outside formal banking system: family, friends, saving groups, private investors.
Real World
Many small businesses in sub-Saharan Africa rely on rotating savings groups (SUSUs) rather than banks; in the UK, immigrant-owned SMEs often use community lending circles when traditional lenders reject their applications.
Exam Focus
Contrast informal finance with formal sources on terms, security, and regulation — 'evaluate' answers need both sides with a supported judgement.
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