Even if you have zero interest in the world of micro lending, you've got to read this book. Bob Harris is incredibly humorous, intensely honest, at times deeply personal and is a wordsmith extraordinaire. My review.
So how do you go from being paid to tour the world and write about some of the most fantastically luxurious hotels and resorts imaginable, to taking everything you were paid for doing the assignment and lending it to help finance small businesses around the world and then writing a book about micro financing? That's exactly what Bob Harris did, although he never imagined things would turn out the way they did when he first took the writing gig. Eventually, he lent all $20,000 he had been paid by Forbes Magazine to do the world tour, to help micro finance entrepreneurs around the world. Later, he went and visited some of the people who he had helped finance, just to see if his loans were effective. The stories he writes about his travels are riveting and the glimpses he gives into the everyday life of people around the world, incredible. You've got to read this book. It is absolutely fascinating! (and no, I'm not being paid to advertise it)
This is more than just a book on micro financing. It's a; history lesson, a travel book, a social commentary, an observation on the "birth lottery", a documentary on individual micro loan recipients and has helped initiate the lending of millions of dollars to finance micro loans worldwide.
Barbe and I have for years lent money through Kiva. Each year our initial loan amount has been returned to us and we have relent it. This has gone on for seven years now. When we first began lending through Kiva, I thought that Kiva actually administered the loans. This is not the case. Kiva brings lenders and Micro Finance Institutions (MFIs) together. These MFIs are responsible for vetting the loan applicants, administering the loans, putting on training seminars and collecting payments. Although we Kiva lenders receive no interest on our loans and Kiva itself is funded through donations, the MFIs do charge interest and are usually meant to be self sustaining businesses themselves. There are hundreds and possibly thousands of MFIs around the world, although there are very few in the USA. For most developing countries, micro financing is the only option small business owners or those wanting to start a small business have for obtaining working capital. Most loans by US standards are very small, anywhere form $100 to $900 USD, but for those receiving them it can be life changing.
Micro lending is part of who I am. In 1987 at the age of 24, a friend lent me $5000 plus interest as a down payment on my first truck. For that first year I made my regular loan payment plus repaid my friend. Since then my business has grown and prospered, but without that first micro loan I don't know where I would be today financially.
After years of lending through Kiva, we decided to start our own family MFI here in Honduras. Actually, we are Kiva and an MFI all in one. I have set this part of our ministry up to function very much like Kiva does. We put applicants and their requested loan amounts out for potential lenders to decide if they would like to lend towards the project, interest free. We then vet, assist in market analysis and administer the loans as the funds are made available. All loans are lent at 0% interest. At this time, we, as a family are providing our services free of charge as a ministry. If this ministry continues to grow, that may change as it can become very expensive, just in travel expenses alone, to administer the loans and do the follow up.
We are currently looking for five more applicants. We have three possibilities, but each of them are some distance away from Siguatepeque which makes the application process a bit more difficult.
So far the Hondurans we have talked with have been overwhelmingly supportive of the idea. Although most people I have spoken to see clearly that these are loans and the reason for it; that to be in business requires the use of sound business principles, I do see an alarming trend occurring. Because we Americans give so generously and in all areas, there is the developing expectation that everything we do should be free, especially if it is connected with missions. This is really no fault of their own, but is, I believe, a result of poor judgement on our part. Without a doubt there is a time to give and to give generously, but when it comes to business, especially when it comes to business, we must promote sound business principles right form the start. "Free" is not a sound business principle and never will be. Because of this, we lend expecting repayment. That is business! We do lend interest free because we are not here to make money off those we want to help and we want them to succeed. That is ministry!
To learn more about how Go and See Ministries MFI works, click this link.
NOTE: Although we depend on your loans to help fund our projects, we too are lending our own money. We will never ask you to lend or to give money to something that we ourselves are not willing to lend or give towards. Also, we will always clearly state whether or not we will personally benefit from a project or ministry That is our pledge to you.
The Wolfe Family
Barbe and I have for years lent money through Kiva. Each year our initial loan amount has been returned to us and we have relent it. This has gone on for seven years now. When we first began lending through Kiva, I thought that Kiva actually administered the loans. This is not the case. Kiva brings lenders and Micro Finance Institutions (MFIs) together. These MFIs are responsible for vetting the loan applicants, administering the loans, putting on training seminars and collecting payments. Although we Kiva lenders receive no interest on our loans and Kiva itself is funded through donations, the MFIs do charge interest and are usually meant to be self sustaining businesses themselves. There are hundreds and possibly thousands of MFIs around the world, although there are very few in the USA. For most developing countries, micro financing is the only option small business owners or those wanting to start a small business have for obtaining working capital. Most loans by US standards are very small, anywhere form $100 to $900 USD, but for those receiving them it can be life changing.
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| My first truck, purchased with the help of a micro loan |
After years of lending through Kiva, we decided to start our own family MFI here in Honduras. Actually, we are Kiva and an MFI all in one. I have set this part of our ministry up to function very much like Kiva does. We put applicants and their requested loan amounts out for potential lenders to decide if they would like to lend towards the project, interest free. We then vet, assist in market analysis and administer the loans as the funds are made available. All loans are lent at 0% interest. At this time, we, as a family are providing our services free of charge as a ministry. If this ministry continues to grow, that may change as it can become very expensive, just in travel expenses alone, to administer the loans and do the follow up.
We are currently looking for five more applicants. We have three possibilities, but each of them are some distance away from Siguatepeque which makes the application process a bit more difficult.
So far the Hondurans we have talked with have been overwhelmingly supportive of the idea. Although most people I have spoken to see clearly that these are loans and the reason for it; that to be in business requires the use of sound business principles, I do see an alarming trend occurring. Because we Americans give so generously and in all areas, there is the developing expectation that everything we do should be free, especially if it is connected with missions. This is really no fault of their own, but is, I believe, a result of poor judgement on our part. Without a doubt there is a time to give and to give generously, but when it comes to business, especially when it comes to business, we must promote sound business principles right form the start. "Free" is not a sound business principle and never will be. Because of this, we lend expecting repayment. That is business! We do lend interest free because we are not here to make money off those we want to help and we want them to succeed. That is ministry!
To learn more about how Go and See Ministries MFI works, click this link.
NOTE: Although we depend on your loans to help fund our projects, we too are lending our own money. We will never ask you to lend or to give money to something that we ourselves are not willing to lend or give towards. Also, we will always clearly state whether or not we will personally benefit from a project or ministry That is our pledge to you.
The Wolfe Family
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