A key part of our strategy to leverage finance from banks and commercial institutions is the use of Guarantors to provide capital to overseas trustworthy farmers, shopkeepers, craftspeople, weavers and other talented, hard-working poor people through microfinance institutions. Without making a donation, a social investment or moving funds to a special account, a typical Guarantor backs up to 5,000 micro credit business loans.

A Guarantor is responsible for the investment returns in their individual accounts, which are invested as each Guarantor determines, but the assets are subject to additional risk. A Guarantor may lose money because of an overseas MFI loan default, but each Guarantor accepts this financial risk in exchange for achieving a worthy and noble social objective.

In the unlikely event of an overseas financial loss, each Guarantor bears a tax-deductible loss.

Guarantors do not realize a return on the guarantee risk, but do maintain complete control of their assets, thus, receiving all investment returns from their portfolios.

MicroCredit Ventures is willing to establish long term relationships with international Foundations and High Net worth individuals who are willing to support our work. We are particularly keen to develop relationships with individuals that can
guarantee our loans.