Imagine your financial situation doesn't allow you to get a loan from a traditional bank. How will you grow your business to improve your financial well-being?
Microfinance Institutions (MFIs)
Microfinance Institutions, also referred to as MFIs, exist to offer low-income individuals the financial resources to buy the necessary goods for their small business, working towards financial independence, and better living conditions.
The MFIs with a social mission open up financing opportunities to local underserved micro and small entrepreneurs. Lendahand assesses MFIs to ensure they offer affordable loans, and support their clients to become formal entrepreneurs so that they can leave the informal economy behind. Suitable financing services allow these entrepreneurs to improve the local economy, create jobs, and find a way out of poverty.
MFI Salym in Kyrgyzstan
Financing needs in Kyrgyzstan
Microfinance Institution Salym supports a wide range of entrepreneurs within different sectors in the rural countryside of Kyrgyzstan. Their loans enable farmers and entrepreneurs to buy working capital and improve their infrastructure, allowing better living and working conditions within local communities.
Entrepreneur Azamat Musaev prints and designs big ads. With loans from Salym, he was able to buy printing machines and raw materials. He needed the loan as clients only pay an upfront payment of 30%, which isn’t enough to buy the necessary production materials.
Working with credit loans allowed Azamat to start up his business successfully and grow to owning three branches across Kyrgyzstan, managing 10 employees and training interns.
"Through the local presence of microfinance institutions, we can even offer support to low-income individuals and underprivileged entrepreneurs in rural and urban areas in developing countries. Isn't that amazing?
MFIs with a social mindset and human approach create a huge social impact. Our investments team is committed to ensuring that the MFIs we work with are responsible businesses who are concerned about people and ethics."
Anshul Jindal -
Head of Investments at Lendahand
Digital Lending Platforms (DLP)
Financial institutions that are brushed up for the future by using fintech are called Digital Lending Platforms. They typically offer short loan periods, give out loans quickly and on-demand and are proven to operate more flexibly by using technology.
The differences between microfinance institutions and digital lending platforms are blurring as MFIs will need to implement technology to lower their operational costs and keep reaching the people who need it most.
Digital lending platforms are efficient, data-driven, and make quick lending decisions to get hundreds of thousands of small loans to businesses on the ground. Offering financing to these DLPs allows Lendahand to attribute to a certain percentage of the impact these companies make on the ground.
From Mexico to Indonesia
Behind the scenes in Jakarta
Dennis takes us behind the scenes of his video production house. How does the financing from Funding Societies helps him thrive in the Indonesian film industry?
Around Mexico City with Creze
Banks weren't an option for Eduardo as he couldn't present a credit history, and Mexican banks are stringent and risk-averse towards small companies. Working with Creze, Eduardo can build up a credit history to get better financial conditions in the future.
Meet Martha from Creze
At Creze, Martha assists Mexican entrepreneurs looking for financing for their business every day.
We asked her: What’s the Creze philosophy?
"Small and medium enterprises in emerging countries are the driving force behind job creation. They have the ideas and vision to start businesses, but lack funding. The Microfinance Iinstitutions and Digital Lending Platforms in our network make sure SMEs get access to that money.
Using technology allows a more speedy and automated process, and the ability to offer cost-effective financing to reach more small and medium-sized businesses."
Daniel van Maanen -
CFO at Lendahand