http://www.uncdf.org/
We are grateful to the Consultative Group to Assist the Poorest (CGAP), the United Nations Foundation, and the Microenterprise Development Office of the United States Agency for International Development (USAID), for the generous financial support provided for the development of the course. Without their assistance this course would not have been possible.
IMPACT OF GRF HUBLAG FINANCIAL SERVICES ON CLIENTS
Access to capital and Enterprise Development
Five Windows of Access to Capital
Access to capital and Enterprise Development
Hublag began operations in 1987 with P500 loans for the working capital needs of 400 poor microentrepreneurs. Today, Hublag microcredit operations have evolved to offer five service windows to respond to the credit needs of a wider range of clients. By end-2002, Hublag had served 15,000 clients through a network of 15 branch offices in 50 towns with an outstanding loan portfolio of P27 million. Hublag has been financially self-sufficient since 1999, which means that it has been generating revenues sufficient to cover all its real and market-based costs.
Five Windows of Access to Capital
1 Microenterprise Financing Hublag provides working capital or fixed asset financing loans to microentrepreneurs with one year business experience that show debt service capability. Businesses are evaluated on income performance per business cycle and collateral is measured as a composite of a client’s possessions.
2 Cottage Scale Business Financing Microentrepreneurs who prove sustainable operations and need to expand can borrow from P30,000 to P200,000. The criteria is more stringent and includes reviewing their competence in planning for expansion. Additional and preferably, hard collateral are required.
3 Providential Financing Public and private employees require funds for regular lumpsum disbursements of a providential nature that their monthly income cannot cover. Hublag provides financing secured by a portion of their salary over six to twelve months.
4 Quick Cash in one hour helps the poor who are often faced with emergencies that demand instant funds such as medical emergencies or calamities that destroy farms and homes. This facility can be accessed for a consideration of the client’s cash convertible assets or equivalents.
5 Pension Financing Retirees have access to funds for their second careers as microentrepreneurs or for home improvements and even their grandchildren’s education. Window 5 provides retirees with four to six months financing to the extent that can be amortized by the pension’s value net of basic household expenses.
2 Cottage Scale Business Financing Microentrepreneurs who prove sustainable operations and need to expand can borrow from P30,000 to P200,000. The criteria is more stringent and includes reviewing their competence in planning for expansion. Additional and preferably, hard collateral are required.
3 Providential Financing Public and private employees require funds for regular lumpsum disbursements of a providential nature that their monthly income cannot cover. Hublag provides financing secured by a portion of their salary over six to twelve months.
4 Quick Cash in one hour helps the poor who are often faced with emergencies that demand instant funds such as medical emergencies or calamities that destroy farms and homes. This facility can be accessed for a consideration of the client’s cash convertible assets or equivalents.
5 Pension Financing Retirees have access to funds for their second careers as microentrepreneurs or for home improvements and even their grandchildren’s education. Window 5 provides retirees with four to six months financing to the extent that can be amortized by the pension’s value net of basic household expenses.
