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FINANTA has a unique credit-building tool based on a popular “village banking” practice. Our Lending Circles are a ROSCA, or Rotating Savings and Credit Association, made up of people who need financial services and are willing to work together to make that happen.
FINANTA’s Lending Circle serves as the gateway to several benefits: access to a lump sum of money, a way to improve your credit score, peer group support, business workshops and individual technical assistance, and access to FINANTA loans. Together with other business owners, you decide the terms of the Lending Circle, while learning how to make real improvements in your business.
THE WAY IT WORKS
WHO CAN PARTICIPATE?
Lending Circles are open to owners of an existing micro or small business, who are committed to learning how to manage their business better through a group setting.
HOW MUCH WILL I GET?
The amount of capital you receive varies according to the number of people in the Lending Circle and the amount the group jointly decides to pay each week.
HOW LONG IS THE COMMITMENT?
The number of weeks in the “term” will be equal to the number of people in the Lending Circle.
WHEN WILL I RECEIVE THE FUNDS?
The proceeds gathered each week are delivered to one group member on a rotating basis, until all members have had their turn. Your turn will be decided by lottery.
WHAT WILL BE EXPECTED OF ME?
Regardless of when you receive the Lending Circle proceeds, at the beginning or the end of the cycle, you must continue to make regular payments until everyone in the circle has received the proceeds or “kitty”. In addition, FINANTA expects you to attend regular technical assistance workshops on how to improve your business practices, from security issues to marketing, for example. Topics and meeting times are decided by the group.
HOW WILL MY CREDIT IMPROVE?
FINANTA reports participants’ payment history to the major credit bureaus every month; thus making your Lending Circle activity official.
WHAT IS THE OUTCOME?
The Lending Circle will continue for at least a year in order to have a greater impact on your credit score and current business practices through technical assistance. In fact, our Lending Circles go hand-in-hand with FINANTA’s technical assistance program, as each group member will receive workshops, credit coaching, business assessments, and peer support.
At the end of each cycle, your group may decide to invite more members or change the payment amount for future needs. Additionally, as your credit and business performance improve you may be eligible for a FINANTA loan.
For more information about our Credit-Building Lending Circles (or ROSCA’s) contact us at 267-236-7000 or send us an email.
