 In 1987 I passed my final accounting exams and for the next 30 years I worked in finance. I worked in general accountancy with Jim Gilligan and John Walsh at Gilligan & Co., then in international tax with Arthur Andersen, then in aircraft leasing with Sunrock (the Irish subsidiary of the huge Nissho Iwai Japanese sogo shosha) and then as Head of Finance at the Irish Stock Exchange until 2017. I made lifelong friendships. I also had the privilege of working with businesses from the very small corner shop or family farm to huge multinationals in pharma and tech. What they all had in common was the need for funding particularly if they needed to expand. This can be hugely difficult for those with little funds to begin with. As a little girl in school in the Presentation Convent, I often heard the proverb “give a man a fish, you feed him for a day. Teach him to fish, you feed him for a lifetime”. But it struck me that this was only part of the story, in order to fish that man would need a boat or rod….and that costs money. So having access to finance is also important for those trying to better themselves. Giving people a hand up instead of a handout is the name of the game.  Clipping from Munster Express Newspaper Page 17 - 17 Nov 1987 MicrofinanceSo, since I’ve retired, I’ve been very interested in the world of microfinance. Microfinance refers to financial services for low-income clients. Although most attention has been on the provision of small loans, microfinance includes the provision of other basic financial services such as savings, money transfer and insurance and is often accompanied with financial literacy and business training. Improving access to such services allows low-income people to finance income-generating activities, build assets, stabilise consumption and protect against risks. Microfinance can play an important role in improving the lives of low-income and marginalised people.    Above: My ACA, FCA and AITI Admittance CertsLend with CareSo I had been looking for a reputable organisation with wide international reach and I came across Lendwithcare.org based in the UK. It’s a revolutionary way to help people in low-income countries to work their way out of poverty with dignity. Through Lendwithcare, you can lend as little as £15 to fund a small business. Once your money is repaid, you can choose to recycle your loan to support more low-income entrepreneurs, make a donation or withdraw your funds. Lendwithcare currently operates in twelve countries and so far, I have lent 21 loans to Vietnam, Ecuador, Rwanda, Philippines, Malawi, Palestinian Territories, Togo, Nicaragua, Cambodia, Pakistan, Zambia and Thailand. The smallest loan I’ve made is £15 and the largest is £100. Would-be lenders can go to the website Lendwithcare.org and view the profiles of individuals in the various countries. These are loans, not handouts: the money is paid back in instalments, typically over six to 12 months. Once repaid, you can choose to withdraw the money or recycle it into another loan which is my preferred way for the moment. So far more than 74,000 loans totalling £2.7m have been made to more than 4,600 entrepreneurs around the world via lendwithcare. The entrepreneurs receive 100% of the loan – no administrative charges are deducted.  My lending summary to date The downside is that you won't earn any interest. In the vast majority of cases you get your money back in full and on time – in fact, lendwithcare says the default rate is virtually zero. In my own experience, I’ve only had one borrower default on £28 and he was based in Gaza and had to default when the recent war broke out. Loans are generally provided by many lenders, so in the event of a rare default, the loss to a single lender is usually small. Not just anyone can seek a loan via the website: the entrepreneurs will have already approached partner microfinance institutions (MFIs) with their business plans. If the MFI is satisfied the plan is sound, it will approve the proposal and upload the entrepreneur's profile on to lendwithcare.org. Most entrepreneurs are seeking a few hundred pounds. It might not always seem a lot to us but it can be a huge out-of-reach amount to someone who doesn’t have it. Most countries are not without their loan sharks, and this microfinance method provides an alternative for people who might otherwise be forced to pay excessive interest when they need to borrow small amounts. Three examples from my loansI’ve picked out three examples from my loans but have changed the names of the individuals involved. These three examples are all female but I also lend to men! 😊 1. Lu* - Vietnam – Fishing - Total Loan Requested £1,510 repayable over 15 months – My Loan £100 Lu*is a 33-year-old woman who lives with her husband and three children. Their oldest son is in the 7th grade, while their two daughters are in the 5th and 3rd grade. the family reside in their own home located in the Hoang Hoa district, a mountainous area in Thanh Hoa province of Vietnam. Lu's* husband works as a fisherman, which is a common occupation for men in the region. He earns approximately $420 per month by fishing nearshore. Lu* contributes to the family income by knitting fishing nets for sale, but her earnings are a little lower at around $170 per month. Her income also fluctuates from month to month. Lu*and her husband work hard to make enough money to support their children's education and secure a brighter future for them. However, sometimes this can be a struggle. Lu's husband has been facing income instability due to increased prices of inputs such as diesel for his fishing boat. To assist her husband, Lu*has requested a loan which will be used to purchase diesel for the fishing boat and new nets for upcoming fishing trips. * name changed 2. Fatima* - Pakistan – Sewing/Tailoring - Total Loan Requested £123 over 15 months – My Loan £48 Fatima* is a 38-year-old resident of Lahore, Pakistan. She lives with her husband and two sons. Both of her sons are students. Her husband works in the private sector and earns approximately £61 per month. Fatima* has been working from home for the past six years. She specialises in custom work, where women bring their dupattas and shawls, and she designs borders according to their preferences. She also keeps a stock of ready-made dupattas with beautiful lace borders that women frequently buy to match their dresses. She earns around £43 per month from her work, stitching laces and designs on the borders of women’s shawls and dupattas. She wants to expand her business, but she lacks the working capital to do so. She has requested a loan to buy different coloured dupattas and a stock of lace. She is confident that investing in her business will bring positive results for her in the future. * name changed 3. 4Together* - Zambia – Farming - Total Loan Requested £1,802 repayable over 6 months – My Loan £15 The 4Together* group has four female members. The women are from Chipata, and they are trained by Microloan Foundation Zambia because they want to run profitable businesses like grocery shops, second hand clothing (salaula) stands as well as poultry farming. These businesses have been operational for the past eleven years. The income is helping the women to send their twenty-seven children to school. Some of these children are orphan relatives. The previous loans have helped the ladies to grow their businesses. One of the women is Sozi*, a very dedicated lady who has been managing her poultry business for seven years now. Having managed her business for that long, Sozi* has acquired a lot of experience, and she frequently shares knowledge on poultry farming with her group members and friends. With her previous loan, Sozi* built a poultry house in order to increase her capacity of the chickens she has. She had a very small one initially. Her profits have helped Sozi* an opportunity to send her five children to school. Sozi* will use this new loan to buy more chickens and increase her sales and profits further. The Microloan Foundation in Zambia lend to female entrepreneurs using the ‘centre’ model. A centre is typically made up of 3-4 sub-groups and these sub-groups almost always have five members. Each centre has its own name and the sub-groups within the centre share the same name. Each person within the group of women is responsible for repaying her loan but the members support each other and if a member is unable to repay her loan on time, then the group assumes responsibility for repayment. Loan officers provide training to the groups, although it is expected that centre leaders will eventually assume responsibility for providing some of the basic training. * names changed So those are just three of the businesses I’ve lent to. If you’re interested in supporting then have a look at their website https://lendwithcare.org/info/how-it-works If you’re stuck for Christmas present ideas then the gift of a lendwithcare voucher might be an idea for you. Once received, the voucher recipient can put their funds to good use straight away by choosing which entrepreneur they wish to lend to: https://lendwithcare.org/gift-vouchers I really have gotten a lot out of lending and it’s heartwarming to see the businesses and their owners thrive. Happy Christmas!! ❤️🎅❄️🎄 Bucket List Items Ticked Off in the above Blog post 119 Number 44 - Giving Back - Support 8 Favourite Charities
Other Blog Posts Blog 11 - Sydney, Australia Blog 12 - Hong Kong, China Blog 17 - Beijing, Xi'an & Shanghai, China Blog 19 - California, USA Blog 27 - Scotland Blog 28 - Barbados Blog 29 - Canada Have you ever lent a microfinance loan? Tell me about your experience in the comments section below. If you liked this post, please share. Sharing is caring 😊
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AuthorMy name is Mary and this is my bucket list blog ...having survived a near-death experience. I hope it encourages you to "live your best life". See how I'm completing my own bucket list items. And let me know how you're getting on with yours! Archives
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