We're what we call a responsible lender. We lend to companies that we deem creditworthy. As I said, we take four times the risk that traditional banks and private financial institutions do, so we're taking a lot of risk. However, we're very careful in our lending models and loss models to make sure that we are lending to companies we think will repay their obligations.
We're not in the business of lending to companies that we know in advance won't have the ability to repay. It's important to note this for a couple of reasons. First, as you would all know, it doesn't help a struggling company to burden itself with debt that it can't pay. That's in nobody's interest, so that's one thing that we try to avoid. Second—and this is important—we have a million dollars of capital to lend and we do what we think we're good at, which is to focus on the companies that represent some risk but can pay back the loan.
As for the way the modelling works, with this million dollars we have we can actually lend out $7 million. We get a lot more reach and a lot more support, and it's a lot more efficient. However, to overstate it a bit, if we do lend to companies that won't and can't pay back a loan, we're stuck lending only that million.
In terms of not burdening individual companies and getting as much reach out of this scarce capital that exists, it is very important for us to do our best, while taking a lot more risk than banks do, to make sure we are providing loans to companies that we think have the ability to repay us and that think they can too.
That was a long answer to your question, but I hope you found it useful.