From Tiva

This post comes in the form of a letter from one of our associates. We hope you will enjoy the testimony of one of the women Microfinance (MF) serves.

A step on the right direction

Small businesses like this are run on a cash basis and stock is built and bought daily, which is a burden for the profitability of the business.

Recently we funded Margo with a small loan so she could buy wholesale, build stock in advance, benefit from lower prices and reduce transportation costs. We expect this strategy to have a positive impact in the long-term strength of the business.

Running against the current

Running against the current is in the DNA of Microfinance (MF): while commercial banks have fancy buildings, we only have a laptop and point-of-sale printer; in the finance industry, customers go to the Banks, at MF we go to our associate’s rural communities; commercial banks typically loan to men, while in MF 98% of our associates are women;

Financial health

Here in Microfinance (MF) we believe that the very simple act of putting apart a fixed percentage of your income (ie saving) can make the difference between having good financial health or otherwise having “debtitis” (ie a well known disease, quite common around the world, that shows up when you need to use a significant part of your income to pay back debt).

After five years…

During these years the business grown and consolidated. With the aim of reaching more clients they decided to move the business from the rural community of Buenos Aires to downtown Jarabacoa. Today they are serving some of the biggest clients in the city, including several public schools.

Microfinance Store

This summer has been also a time to invest in our associate’s businesses from a different optic: launching the Microfinance Store, our particular business-lab where our associates can test if their products may be successful in the market.