FAQs


Click on a question to view the answer to it.

Our Microlending
What is a Microfinance Institution (MFI)?

A- A microfinance institution (MFI) is an organization that provides financial services such as loans, savings, and maybe even insurance to micro-entrepreneurs and/or unbanked people. A MFI can operate as a nonprofit like a non-government organization (NGO), credit cooperative, non-bank financial institution (NBFI), or even a formal, regulated for profit bank.

Most MFI’s provide microcredits to micro-entrepreneurs of low-moderate income in the areas where they operate. Some provide additional financial services such as insurance, micro mortgages, saving programs, as well as social, health and small business training.

MFIs differ in size and reach; some serve a few thousand clients in their immediate geographical area, while others serve hundreds of thousands, even millions, in a large geographical region, through numerous branches. Many MFIs offer services beyond loans and savings, including education on business and financial issues and social services focused on health and children.

What is a microlending program?

A micro-lending program is the offer of microcredits and other financial services to unbanked or low-moderate income people to help them increase their income through entrepreneuship and self-employment.

How does microfinance help solve poverty?

Different approaches and tools are required to address solve poverty, Microfinance is only one of the tool that is working effectively to help the poor lift themselves out of poverty.

What is a Social Responsible Institution?

Also called social enterprise, a social responsible institution is one that has the purpose of positively impacting the community by either helping people being included on the financial system, environmental improvement, community development, or education.

What is Social Investment?

An alternative investment for individuals that want to put part of their capital to generate financial return as well as positive social impact and/or environmental value.

Microcredit
Are Microcredits only for businesses?

Even though some microfinance institutions offer different types of microloans, the methodology, philosophy and objective of the microfinance programs is to help microentrepreneur either with microcredit or financial training.

Why don’t people just use traditional banks?

Microentrepreneurs usually do not qualify for any bank loan from the formal banking sector because: they typically have no credit history, and some are not employed in the formal sector, so there is no record of employment, but like everyone else, they need access to financial services to run their businesses, manage risks, and plan for a more stable future.

Who can apply for a Microcredit?

Any person with a business that has been running for over 6 months; if less, then the client must be able to prove vast experience in the field, have a valid social security number, and older than 18 years old.

How is Microcredit different from a traditional loan?

This type of loan differs from bank loans in:

Requirements: no minimum credit score is required, all the analysis and the decision are based on the ability to pay, the client references and the performance of the business.

Method of qualification and clientele: microcredit clients spend all their time taking care of their businesses themselves given that often time, they have less than 5 employees. In that regard, microfinance methodology is based on a very personalized service in which the loan officers go to the client and guide and assist in putting the loan package together, rather than making the client come to the office to do all the paperwork.

Conditions: interest rates according to the risk of the market attended.

Terms: significantly shorter than the traditional bank loans.

How does Microcredit work?
  • Detailed analysis of the business and the customer.
  • Analyzed ability to repay the micro loan
  • Establishment of a personal relationship with the customer
  • Knowledge of our clients’ needs

Step lending scale, which consists of increasing the amount of the loans and its terms, while simultaneously reducing charges (interests) and fees when the client fulfills his/her commitments, is one of the basis of microcredit methodology.

OUR MicroLending provides very small, short-term loans at interest rates that reflect the cost and risk of lending.

Microcredit methodology has been designed to both meet the needs of microentrepreneurs and microbusinesses and to ensure that the microenterprises organizations we work with become financially profitable.

OUR MicroLending considers microentrepreneurs skilled business people, not objects of charity.

Like traditional banks, OUR MicroLending evaluates potential borrowers. However, the methods of accessing business and personal financial data to measure financial indexes are much flexible than traditional or conventional banks.

Our loan officers meet potential borrowers in their places of work, where we also weigh intangibles like references from customers and neighbors.

There is no penalty for pre-payment of loan.

What is a Microcredit?

A microcredit consists of making very small loans to individuals or corporations, usually women, to expand or develop a micro, self-sustaining business, and occasionally to establish a microbusiness.

Secured Loans
How much will it raise my credit score?

It will depend on the term, amount and performance of the client.

Who can apply?

Any person older than 18 years old that can provide proof of income, address, a valid social security number and guarantee deposit.

How does a Secured Loan work?

For this type of loans the client provides collateral to guarantee repayment of the loan. This is done when the client makes available an amount equal to the loan used as security.

What is a Secured Loan?

A secured loan is an installment type of credit to help people build or reestablish their credit. This cash secured loan is extended when a borrower uses their liquid capital to guarantee the loan.

Investment
How do I start my investment?

To start an investment you can read the offering circular on our web site and fill out the registry form to receive all the instructions and documents, or you can contact us directly at 305-854-8113

Which states are subscribed for these certificates?

So far we are offering OUR Investment Certificates in DC, New York, Colorado, New Jersey and Illinois.

Who can participate in this?

Cualquier persona mayor de 18 años que quiere recibir un alto rendimiento sobre una inversión, mientras que el apoyo a un programa positivo impacto social de las microfinanzas.

What is an offering circular?

An abbreviated prospectus for a new security listing. Delivered to individuals and brokerage houses, these documents are issued to arouse interest in the new issue.

An offering circular allows investors to access information regarding a new issue. It provides them with the important highlights without having them actually read the long-form prospectus.

What is the Securities and Exchange Commission (SEC)?

Securities and Exchange Commission (frequently abbreviated SEC) is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation’s stock and options exchanges, and other electronic securities markets in the United States.

What is an OUR Investment Certificate?

An OUR certificate is the name OUR MicroLending gives to the paper that certifies the purchase of the investment, it reflect the amount, term, type of interest payable and the name of the investor.

How is social Investment different from Traditional Investment?

In traditional investing, investors weigh investment decisions by looking at two factors, risk and financial return.

Each investor has a certain comfort level across the risk-return spectrum, and he or she does their investing within that band of the spectrum. An investor might be comfortable giving up some of their return if an investment is safer. On the other hand, the same investor might be willing to take a little more risk with an investment if it translates into a higher return.

In social investing, a third factor is thrown into consideration — social impact—. Social impact means that the enterprise supported by the investment yields some benefit to society beyond the income it generates for investors.