Caribbean Microfinance Limited

The Microfin Group is a regional finance institution providing loans and financial services to owners of micro-enterprises in the Caribbean. Microfin provides a business partnership offering loans within the range US$500 to US$50,000.

MISSION 

The purpose of Microfin is “to provide loan financing and business services to local communities of micro and small entrepreneurs who pursue profitable business initiatives on a permanent basis and sustain themselves as responsible citizens.”

Microfin provides loan financing and business services to local communities of micro and small entrepreneurs who pursue profitable business initiatives on a permanent basis and sustain themselves as responsible citizens.  MICROFIN must be managed as a sustainable and suitable source of financing for the largest possible number of micro-enterprises and small enterprises in the Caribbean. That requires implementation of a Business Model that is relevant to the Caribbean.

BUSINESS MODEL

It follows that MICROFIN must be managed as a sustainable and suitable source of financing for the largest possible number of micro-enterprises and small enterprises in the Caribbean.   The fundamental strategies for executing that mandate are:

• We must maintain financial soundness and portfolio growth and generate a high level of economic value added (EVA) on our own capital
• We must arrange our business so that our clients view their relationship with us as a partnership dedicated to progressively achieving their aspirations to be self-sufficient and to provide for the future

We believe that Microfin can be successful only as a decentralized organization where subsidiaries maintain relationships with clients and learn how to develop approaches that best suit the local environment.  The parent company must distill knowledge gained from these experiences to be able to design products, practices and processes that are efficient. Parent company management must monitor performance, audit field operations, select and develop key staff, arrange funding and promote the organization as a whole. This Business Model will work in the Caribbean but it must go further. For persons living at low-income levels, savings is a necessity. Microfin is a credit institution providing credit-related financial services. We must work closely with savings institutions including commercial banks, credit unions and co-operatives.

Visit our website at www.microfin.org