Non-extractive finance is a way of lending that benefits communities, while building wealth for borrowers rather than lenders. The three most common terms of a non-extractive loan are:

• No repayments greater than profits: Borrowers are not required to make interest or principal repayments until they are able to cover operating costs, including market-rate salaries
• No personal guarantees: Financing agreements never use assets for security unless the asset has been purchased with the financing agreement proceeds
• No credit scores: Instead of credit scores, Seed Commons uses close relationships between local loan officers and potential loan recipients to establish a borrower’s reliability
  

Source: Seed Commons