Alleviating Poverty through
Biblically Based Business

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Funding Progress

Funding progress is neither particularly easy or straightforward, but it is necessary. Without some form of intervention, the lack of financial resources in the areas where we want to make a difference would strangle any attempts to put the training into practice, and delivering the training without resolving this issue is likely to simply create frustration. 

Essentially there are two main forms of ensuring sufficient resource for starting the businesses which arise out of the training:

  1. rearranging what little existing finance there is to concentrate it in a place where it can do some good (this is the principle behind the Village Savings and Loans model);

  2. or seeking external finance on a temporary basis. 

And of the latter, there are two further forms: individual loans set against some form of collateral (for example a bank loan); or collective loans across several businesses which mutually guarantee repayment (the underlying principle of the microfinance model).

Any of these can be used effectively, but for a number of reasons we tend to lean toward the VSLA model which can be read about by clicking the VSLA link. For information on Microfinance schemes which may be operating in your area, you might look to see whether 'Five Talents' is operating in your area, or look up other microfinance schemes in that area through MicrofinanceGateway

But whatever source of funding you choose, it is important that it is an integral part of their community and infrastructure, and not something we have added on and maintain from outside. Finance is a hard matter and we tend to be too soft on it, and as a result our efforts (from a distance) can be counter productive. We therefore strongly advise against setting up any form of business loan arrangement yourself unless it is based on the VSLA system where the money is generated locally. To understand more about why we are taking such a hard line on this, read The Finance Issue


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