Getting a loan for a small business has quite often led businessmen to a brick wall, either you fail to have any credit score at all or even if you do have, it does not turn out to be sufficient for the approval of your loan. This brings you to a complete standstill and even though you feel that you have a very good idea for business, you are not able to materialize it. This feeling of rejection and failure is not taken nicely by all, leading them to become complete wasters of life.
The concept of micro financing is probably your savior in this scenario. This is a loan given out by various organizations such as the Mercy Foundation, of which Joe Johnson Welfont is a leader, to help the small businessmen achieve their dreams. This particular system of loan does not require you to go the bank for help and hence it does not matter, even if you do not have a bank account. This concept has largely been rising in the United States of America although it evolved in the developing companies. It seems that Mexico too is availing this process to quite a considerable quantity.
This process of financing helps the small businessmen hugely by providing them funds to fund their own already established or a new business. It can also provide inventory financing for manufacturing. The return of this kind of loan is done in small amounts as well which is why the borrower does the feel the pinch in his pocket. The MFI or Micro financing institutions are growing in number across the globe because of their high demands, as they provide loans to those people who are dejected and cannot find financial assistance from the traditional methods.
This concept undertaken by the non-profit organization Mercy Foundation has drastically helped in changing the lives of numerous people all over the world, right from Africa to Asia to Latin America, countries in all continents have been gratified by the concept of micro financing tremendously. Joe Johnson Welfont one of the principle leaders of this organization along with his volunteers keeps a close eye on how each borrower is able to realize his dream of setting up or expanding his business with the help if this.
The MFI’s understand and believe that anyone is capable of fulfilling their dreams, it is not by their choice that they belong to the backward class of the society, if they have an idea for business it should be surfaced and helped to grow. It is not fair that if the bank does not lend them money they just throw away their business idea.
Being successful needs a little a boost, and if the banks are incapable of doing that the MFIs are there to do so. Each MFI however, works differently and the repayment terms and conditions are always agreed upon in written. The MFIs also offer business counseling, ongoing support to establish and help in the growth of the already existing business as well as advice on how to go about the business.
In short, the concept of micro financing has given a platform for the weaker section of the society to showcase their talents as well in the world of business, and perhaps it is from there that a great business tycoon will emerge.