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Comment by Wilfried van der Veen
Author: Wilfried van der Veen (9)
Date posted: Tue, 09 Dec 2008 07:45:31 PST
Comment on: Microfinance for social entrepreneurs - a new model in the m... (0)
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Hi Grace, this is really a very interesting opportunity. The eco-tourism facilities are supposed to generate funds for the training component and have to operate commercially. Therefore a loan to start the facilities is welcome. However many potential donors are hesitating to give money "just like that" and want some guarantee that the proposed plans are really implemented. An external monitoring opportunity based within the country of operation could create confidence and therefore more willingness to donate or lend the required funds. Some topics to be covered in an agreement are the terms of lending, such as lending period, re-payment terms, (annually? all at once? or only after the business actually generates money, sufficient for a repayment of the loan?) Actually we are looking initially for about 10,000 Euros. The offered loan amount is Euro 5000 with a deduction of some management fees. We have to agree on the % for the fee, is such a % covering the monitoring during one year of during the whole lending period?