Since its launch, Root Capital has provided more than $120 million in credit to 235 grassroots enterprises in 30 countries in Latin America and Africa with a 99% repayment rate from our borrowers and a 100% repayment rate to our investors.

Root Capital provides grassroots businesses with capital, financial training, and connections to these emerging ethical supply chains. This creates economic incentives for poor rural producers to engage in environmentally sustainable and socially responsible practices.

Finance: Innovating Rural Finance

We lend to small grassroots businesses that are locked out of the local banking system and have few alternatives for affordable credit. We provide financing for both short-term working capital loans and longer-term investments.

For many of our loans, we use future sales contracts from companies like Green Mountain Coffee Roasters, Marks & Spencer, Starbucks, and Whole Foods as a form of collateral. When natural products are shipped, the buyer pays Root Capital directly for interest and principal payments. Because of this factoring model, we can be confident that a loan will be repaid (indeed, our repayment rate is over 99%.) By moving beyond traditional approaches to collateral, we are proving the business case for lending to the rural “unbankable”.

See More of Root Capital Here

Consumer advocates and members of congress are both upset and annoyed by credit card companies that are scurrying to raise their interest rates and fees whilst lowering their cardholders’ limits before new laws take effect, just seven months from now.

Looked at from a lender’s point of view however, it’s easy to see why they are in such a rush to both protect and to increase their profits.

The new law when it’s enacted will prevent card companies from raising rates on existing balances unless the borrower is at least 60 days in arrears, and will require the original rate to be restored if payments are received on time for six straight months.

Under the present law, credit card companies are not obliged to get permission from customers who’s spending will take them over their limit, but since customers who exceed their limits are charged a fee, the new law states that their permission must be given. Read the rest of this entry »

There is a constant debate over the use of the twp main types of small business loans and which is more useful. In truth they both have their place, and rather than argue over the attributes of each, businesses are wise to use a combination of both at opportune times during their growth.

Small, or new business owners may not fully understand what the differences are, and some, new to the business financing realm may not even know what equity financing is. The term equity is bandied about in personal loans regarding the value of assets versus outstanding loan amounts placed on it, and equity is acquired much the same way in businesses. However, equity lending is not done on a personal level so understanding how the equity can be used to fund a business is something all newcomers should understand. Read the rest of this entry »

Because we live in a society that is dependent on credit, having credit that is bad can make life very difficult. Many high paying jobs won’t hire you. Lenders are unlikely to give you a mortgage. Getting an unsecured credit card will also be hard, if not impossible. It is not a secret that many people have less than perfect credit. But why is this, and what can be done about it?

Many of the credit problems people experience is a self-inflicted wound. This means that most people are their own worst enemy, and hurt themselves. They are caught up in having the latest gadgets, clothes, shoes, or electronics. Few take the time to read articles like this to find out ways they enhance their personal finances. Because of this, many people don’t try to change until they’re in debt that may take years to get out of. The best way to avoid debt is to change your lifestyle. Statistics show that the average American household has almost $10,000 in credit card debt, and this should tell you something. Read the rest of this entry »

There are 2 sides to the changes in bankruptcy rules. It will be a lot harder to file bankruptcy under chapter 7 and get a totally clean slate.

For businesses, relying on issuing credit, the new personal bankruptcy law is doing great, reducing personal bankruptcy claims from the thousands to double digits.(In the short run).

However, lawyers working with the actual people filing for bankruptcy say that the new law is seriously flawed because it puts more financial burdens on already broke clients and reduces potential debt repayment to small businesses. Read the rest of this entry »

Historically, economic downturns and financial crises, were nearly always boom times for debt collectors, because their earning are usually based on the amount of money that they regain. This recession is entirely different however, due to its severity, and what was previously almost inconceivable, is now taking place.

Credit card companies have finally realized that due to the depth and breadth of this recession, that a huge number of Americans are so hard-pressed, that they can’t, and won’t be able to pay their bills.

The consequences of this depressing realization mean that the number of troubled borrowers that are now getting payment extensions, has close to doubled in the last six months, and borrowers that are having major problems are frequently being offered hard to believe deals, that release them from 20 – 70% of their credit card indebtedness. Read the rest of this entry »

I’ve seen it a thousand times; a good, solid business being turned down for a business loan because they have made a few mistakes in the past. Let’s face it; bad credit happens sometimes…especially in this economy. So if you are a business owner who has less than perfect credit, and you need money to either expand your business or to even save it; you are going to need to figure out another way to get financed.

A growing trend among business owners in need of financing is a merchant cash advance. For those that don’t know; a merchant cash advance (or merchant loan) is a funding alternative that doesn’t require good credit or collateral. To qualify for a merchant loan, you just need to own your business for at least 6 months, and process at least $2,500 in credit card sales each month.

Another key benefit to this type of funding is that you get your money in a fraction of the time it takes for a bank to process your loan. A typical provider can get you funded in less than a week from start to finish. This is extremely beneficial for any business that needs money in a hurry.

What makes this type of funding possible is that they base the advance amount on your businesses credit card sales and use your credit card processor to pay it back. This helps to illuminate some of the roadblocks between you and your money.

If your business needs working capital and you’ve been turned down by the banks; you might consider leaning more about this business loan alternative.

Author: Chris Ronk writes articles about business loans and merchant cash advances for http://www.merchantcashadvanced.com

The Ms. Foundation for Women, a social justice foundation, delivers strategic grants, capacity building and leadership development to over 150 grassroots and national advocacy organizations throughout the U.S. Ms. Foundation support enables groups to create connections across issues, constituencies and policymaking levels to strengthen social movements and ignite change on behalf of women, families and communities. Since 1973, the Foundation has granted more than $50 million to organizations in rural and urban areas nationwide.

The Ms. Foundation supports the efforts of women and girls to govern their own lives and influence the world around them. Through its leadership, expertise and financial support, the Foundation champions an equitable society by effecting change in public consciousness, law, philanthropy and social policy. Read the rest of this entry »

Types of Small Business Administration Lenders

Getting a loan from the SBA can be extremely beneficial to your business. In order to minimize your time and energy spent on receiving a loan however, it is important to be informed about the different types of lenders that assist you in receiving SBA loans.

The SBA itself does not participate in the lending process to individual business owners. Instead, it has created a network of banks and lenders in your local community that offer SBA loans. These lenders fall into three distinct categories which will turn out to be important in choosing one of the 22,500 lenders associated with the SBA. These lenders are General lenders, CLP lenders, and PLP lenders. Read the rest of this entry »

Options For Business Financing
By Wade Henderson

Finding business financing is especially important to small and medium companies all around the world who are mainly supported by financial institutions.

Business financing is what most medium and small entrepreneurs are concerned about. The reason for this is the fact that these types of businesses are important in the new world of globalized commerce. Competition is increasing and banks are more reluctant to give the so much needed business financing.

Here we present you a set of options if you are looking for commercial  financing.

The most common route taken by new entrepreneurs is to create a budget for equipment and the first investment and request business financing through commercial loans. Read the rest of this entry »

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1. An internal unit within the bank;
2. A financial subsidiary;
3. A Private Service Company;
4. Creation of new MFIs with bank co-investors.

The basis for choosing among the above models is a combination of the macroeconomic environment in each country, existing legal frameworks, cost efficiency considerations and additional variables. Each of the models has distinct legal structures. The legal structures suggest but do not dictate the operational structure. Yet operational structure choices are critical to the ability of the microfinance operation to build upon the advantages of the bank.

ACCION will underwrite the success of the new institution in two ways: 1) co-investing in the new institution with the bank in order to share risk; and, 2) pricing technical assistance services in two parts; a fixed fee to cover basic operational cost and a success fee based on the financial results of the project.

For more information about ACCION’s commercial banking services or other technical assistance services, please contact:

ACCION International Headquarters
56 Roland Street, Suite 300
Charlestown, MA 02129
Tel: (617) 625-7080
Fax: (617) 625-7020

It used to be that “people” made decisions about your credit worthiness. You knew your banker and your handshake was all the collateral you needed. Those days are long gone, and now a single number – your FICO score – determines your credit worthiness.

Although there are several credit models, the most commonly used is FICO, based on a model created by Fair, Isaac Company. Their consumer website is myfico.com, and you can find information about the FICO credit scores there.

Your FICO credit score can be used to determine your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money. Read the rest of this entry »

Real estate investing, whether doing house flips or commercial, follows the traditional axiom of “In order to make money, you need to have money”, Or so it seems. This article will showcase how this isn’t necessarily the case, and provide you options to acquire real estate with no money down, or with bad credit. Note that these are not guarantees, they’re techniques. Like all techniques, and most advice in real estate investing, they won’t do you any good unless you follow them carefully, and know when not to follow them to suit the deal you’re brokering.

First and foremost, you need to ask the classic question, What’s my motivation? Or, rather, you should know your motivation already you should be asking yourself what the seller’s motivations are. These provide the key to understanding what the seller really needs (rather than what they want) and will provide insight into how to make the deal happen, even under less than ideal circumstances. Is the seller trying to get out from under the house to facilitate a new job? Have they experienced a financial setback? Are they in danger of a home foreclosure? It’s not quite a case of search out the desperate sellers , but knowing why they want to sell now and what they need is a clue on how you structure the deal. Read the rest of this entry »

Finding proper business financing is not easy at the best of times for most small and medium sized business owners and managers.

There are a number of reasons that collectively explain why the business financing market can be so difficult to understand and navigate.

But probably the single biggest reason is the lack of useful information about how the business financing market actually works.

Business financing information and education sources predominantly come in two forms: 1) Text books; 2) Major bank advertising.

If you’ve ever read through a educational finance text book or taken a business financing course, you already know how difficult it can be to apply the theories, principles, and strategies to a small or medium sized business. Read the rest of this entry »

A person who obtains a payday loan for the first time need not have butterflies in his stomach. Getting a payday loan is relatively simple and fast, especially if a person submits an application online. Completing an online application takes between two to six minutes, depending on how fast a person reads and types… Online payday loan companies require loan applicants to complete an online application form. Based on the information disclosed in the application form, the lender will determine whether the applicant is qualified for a payday loan or not. Most lenders collect information about potential clients from four sources: Read the rest of this entry »