Designing for Financial Viability of Microenterprise Programs. Tools for Microenterprise Programs: Financial Assistance Section

摘要

This technical note presents a simple model for projecting the financial viability of a microenterprise credit program. The model is appropriate for initial program design, as well as for analyzing proposed shifts in program methodology, loan sizes and terms, and fee structures. Part one introduces the model, walking the reader through a series of tables to determine a program's income based on six variables: number of loans per month per fieldworker, effective loan term, average loan size, number of fieldworkers, annual interest rate, and commission rate. Another series of tables calculates expenses: personnel and administrative costs, cost of capital, bad debt reserve, and devaluation through inflation. In Part two, the model is applied to four programs to demonstrate how decisions on methodology influence costs, income, and thus, financial self-sufficiency.