In many Asian countries going back probably to the beginning of banking the citizens often saved and pooled their money to invest instead of using banks. This still goes on in various permutations from local villages to large investor groups and all kinds of versions in between.

In a nutshell, they self-finance through these groups instead of using banks. Much like it sounds like the Li folks are doing and will be doing. They keep the money within their cultures and no banks are involved.

So yes, it is usually cheaper money and easier to get. The downside is their growth is limited to how much they have within their group.

I would say these groups are more likely to fund a start up like RMHB than a bank would, so that's good.