As discovered by many courageous business minded individuals, the lending industry is a very profitable business when supported and managed properly.  The microfinance business however, is not for the faint hearted.  It takes five times more courage to take on this industry than a regular lending establishment.
 
For a start, the target market clients of a microfinance institution are those bordering in the “on the line” poor and “just above poor” class of society that are engaged in microfinance entrepreneurship.  From street vendors to a small company with less than Php500,000.00 (only for the Republic of the Philippines) declared assets may be eligible and qualified to be extended a loan.  So the risk involved in not having a 100% repayment is very high.  However, results shows that three (3) combinations will make your microfinance lending business a success.
 

1. The Right Discipline/Method

• Your policies and procedures for your microfinance business must be 100% intact.
• Must be adhered to strictly.  Market research must be done in order to come up with the proper manual.

     2.   The Right Personnel

• Choosing the right personnel is the key to success of this business.  Integrity and dedication will go a very long way.

     3.  The Right Client

• If 1 & 2 are followed,  this will automatically come.

 
If your microfinance lending business perfects item no.1, the rest will follow and success will come your way.  It is the owner’s top responsibility to have the heart for this business.  Otherwise, it will not work.  Microfinance lending is both a business and a reach-out institution.  Nothing is more rewarding than seeing a micro-entrepreneur becoming a success knowing that your company is one of the main contributors to it whilst generating income for yourself as well as uplifting the quality of life in your area.
 
The above three combinations will be discussed further in a more detailed individual articles.