save your lifeMicrofinance is saving lives in the world, by providing day-to-day funds for spending, money for small business and access to more jobs.
I’d like to introduce Rafia, a Bangladeshi entrepreneur, making figurines from bamboo. Rafia used to have a lot of customers and made sales roughly around $100 per day, which was a substantial amount for the region. Unfortunately, the costs covered most of the revenue.
Rafia couldn’t afford to buy bamboo in bulk from her supplier, which led to smaller orders and increased rates. Because of this, Rafia was left with around $1 per day as actual profit. Banks denied her loans due to her mostly dealing with cash and not having any credit history, which put her in this limbo of uncertainty.
Months and years of struggle didn’t break her, and once the first microfinancing agency was introduced to her area, she tried her luck with them. Her small company quickly got back on its feet, thanks to microfinancing’s orientation on small businesses and small loans.
Thanks to the bulk order of bamboo that she used the loan for, she was able to buy her supply at a 30% discount, which later increased her profits to roughly $30 per day.
Learn about five ways it can save YOUR life
1. Microfinance can help you become a business owner
Banks have become a lot more focused on large loans rather than smaller business loans. SMEs and aspiring entrepreneurs are left at the mercy of private investors. The microfinancing industry has been combating this issue for decades now, trying to provide additional options. All in all, Rafia was able to cover her debt within a few months, as well as save enough for future bulk orders. It is an excellent example of what microfinancing aims to solve and how it supports growth.
2. Take it slow and grow faster
Not only was Rafia able to cover the loan within months, but she was able to do so on her own terms. You see, banks usually restrict the loan to 6 months, 1 year, 2 years, which increases monthly payments. But the microfinance platform provides opportunities to divide the debts for up to 10 years.
Due to the number of people using these loans, the microfinance companies can afford to allow their customers to take their loan repayment slowly, thus encouraging more growth in the process.
3. Passive income is an excellent income
Rafia’s story wasn’t only hers to be exact. The person that loaned her that $1000 is also an important character. Sam lived in the US and the $1000 that she loaned to Rafia was not a huge sum. However, with this investment, she not only supported a person in need but was able to make profits on the interest rates.
Microfinance also supports people registering on the platform and providing lendable money. You too can profit on the extra cash you might have laying around.
4. Creating more jobs
This may not directly affect us as market participants, but it supports those who don’t have the means to do so. After supporting business growth, microfinance ensures more jobs to appear, thus increasing the economy and providing millions of unemployed people, means to support their families.
If you’re in the market for a job, the next company that invites you for an interview may have been birthed from microfinance.
5. Health & Education
Microfinance focuses on providing funds to people who struggle to make ends meet. It’s not only for business loans; it’s for personal ones as well. Therefore those who have issues covering medical bills or tuition may find microfinance as a perfect solution, rather than having the government get involved.
Where to start with microfinance?
AssetStream, tackles loan issues by introducing its blockchain-based platform to the industry. Due to the increase in transaction speeds that blockchain provides, the major issues of waiting times and increase fees are a thing of a bygone age. Microfinance may have already been a delicious cake, but AssetStream is like a cherry on top.
Does microfinance solve your issues?
If your question to the answer is yes, then you’re in the right place. Analyzing how exactly microfinance can help you is just the first step, while taking action is another.
Why go for just a slice of microfinance, when you can get the whole cake at a lower cost with AssetStream?
Find your funds within minutes, and start that business, cover those bills or find a use for the extra funds you have laying around now!
Disclaimer: This is a guest article. The views, opinions and positions expressed within it are those of the author alone and do not represent those of Cryptopolitan. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.
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