Let's Change the World.
So How Do Her Global Fund Loans Work?
Banks lend based on collatoral and credit, of which the economically disadvantaged do not have access to. Her Global Fund provides the impoverished access to loans as to empower and break the cycle of poverty.
Applying and receiving loans are considered on an individual case basis. By utilizing Her Global Fund's trusted and established network of 501(c)(3)s, banks, individuals, and other partners, reccommended recipients are brought to the organization's attention. These recipients have a high success rate as do our organic applicants. All applicants must submit loan applications, have 2 reccommendations, have a viable and specific business plan, and need $50-$250 (U.S. currency conversion). Before a final decision, candidates are given a phone or in person interview depending on their location.
Recipients are provided valuable business educations before utilizing their loans. Once they begin investing in their businesses in this way, mentors guide and assist the women as to assure maximum performance. Initial valuations of businesses are done utilizing cash flow analytics, The Rule of Thumb, and conventional valuations such as transactions comparables.
Her Global Fund uses this group lending method which promotes responsiblity and business growth through team work. Thus, if accepted, the recipient is placed in a group of other recipients, preferably of the same area and age. If one woman defaults on her loan, all recipients' loans are halted. The principal amount of the loan is lended in lump sum. An interest rate of 2% on average is charged per year and paid in bimonthly installments. At the conclusion of each year, if the recipient has shown vast improvement in her business through a relatively sizeable net income over the year beginning the day her business opens to the day of review, then interest is deemed null and only principal is paid back. The rates are progressively smaller as revenue increases. In this way, if a business makes $100 or less per month, the sizeable interest that nulls interest is 3%, if the business makes between $100-$200 per month, the sizeable interest that nulls interest is 5%, and so on.