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Our Products
Our Products
SIF’s primary focus is on MSMEs with credit needs that range from $50K-250K with estimated average loan size of $75K-100K. This segment is underserved by banks, social lenders and other credit providers that generally focus on larger loans (<$750K) or smaller microlending (>$5k). The larger loans are typically underwritten and processed using traditional, bank-based credit policies and procedures, while the microfinance loans employ a community-based approach. The platform will support three loan types; however, we will focus initially on only Working Capital and CapEx loans.
Working Capital (< 1 yr)
These loans are structured as invoice discounts, secured by the underlying contract or invoice. Once a successful repayment history has been established, pre-export finance loans will be considered to provide earlier funding for harvested produce to reduce post-harvest losses.
CapEx Loans for Equipment, Machinery/Facilities financing (3-5yr)
These loans are structured with longer tenors and secured by machinery/equipment or other capital goods/improvements financed by the loan. Repayment is structured to allow for variations in cash flow with flexibility for periodic interruptions in ability to make interest and/or principal payments. SIF will generally only make longer tenor like these when the applicant has demonstrated a history of successful loan repayment, whether with SIF or a bank or social lender known to SIF with a demonstrable secured market.
Mezzanine Loans / Equity
SIF will consider longer term loans and permanent capital after successful demonstration of ability and willingness to repay loans, and determination of eligible MSMEs that have appetite for this type of capital catalogued based on the pipelines developed for the Fund. We do not anticipate offering these loans in the near term.
