Loan Disbursement & Repayment

Introduction:

To reach its 100% repayment rate goal, MEnvesti introduces its Loan Disbursement & Repayment (LDR) strategy. The LDR strategy borrows from traditional Rotating Savings and Credit Associations (ROSCA), commonly known as Sòl in Haiti, and integrates peer-to-peer trust and accountability. For more details on how LDR works at MEnvesti, read the following FAQs and see the accompanying illustrations that follow.

What are SAPs?

SAPs (sòl members) are other entrepreneurs from MEnvesti (with one or more project listed) that the borrower (mèt sòl lan) selects to be part of his or her Accountability Group (or sòl). Loans for a given borrower are distributed to the Borrower and the group of SAPs.

What do SAPs do?

Once crowdfunding for a project is completed, MEnvesti disburses the funds to the borrower (mèt sòl lan) and his or her SAPs (sòl members). The Borrower receives 25% in advance while the rest is divided equally among the SAPs.

 

How can borrowers access the funds SAPs hold?

Each SAP (or sòl member) will return their funds to the borrower (mèt sòl lan) in exchange for a confirmation that the borrower has submitted (1) the bi-weekly Revenue Reports, (2) one of the 3 Supervision Reports and (3) pay back at least 5% of the total loan amount to the beneficiaries. SAPs return funds to the borrower in group of 2. For example, 2 SAPs will give their allocated funds (totaling 25%) to the borrower during each supervision phase in exchange for the tasks mentioned above.

What happens if an SAP can't return the funds?

If an SAP can't return the funds within a week after the borrower has completed the requirements, MEnvesti will issue the payment directly to the borrower. The funds will be deducted from the SAP's loan amount for their listed project on the crowdfunding site in addition to a 7% non-payment fee off their loan amount.

For more details, see the illustrations bellow for each supervision phase:

1

Crowdfunding Completion 

Once crowdfunding is completed, MEnvesti disburses the funds to the borrower and his or her Supervision & Accountability Partners (SAPs). The Borrower receives 25% in advance while the rest is divided equally among the SAPs.

SAP #1

SAP #2

SAP #3

BORROWER

SAP #4

SAP #5

SAP #6

12.5%

12.5%

12.5%

25%

12.5%

12.5%

12.5%

At the beginning of the Start-up phase, 2 SAPs will return a total of 25% to the borrower in exchange for confirmations that the borrower has submitted (1) the bi-weekly Revenue Reports, (2) the first Supervision Report and (3) pay back at least 10% of the total loan amount to the beneficiaries.

2

Start-up Phase

BORROWER

SAP #1

SAP #2

SAP #5

SAP #6

Loan

SAP #3

SAP #4

At the end of the Start-up phase, the borrower will have received a total of 50% of their total loan and reimbursed 10% or more.

At the beginning of the Implementation phase, 2 SAPs will return a total of 25% to the borrower in exchange for confirmations that the borrower has submitted (1) their bi-weekly Revenue Reports, (2) the second Supervision Report and (3) pay back at least another 10% of the total loan amount to the beneficiaries.

3

Implementation Phase

BORROWER

SAP #6

SAP #5

SAP #2

SAP #1

SAP #4

SAP #3

Loan

At the end of the Implementation phase, the borrower will have received a total of 75% of their total loan and reimbursed 20% or more.

At the beginning of the Operation phase, 2 SAPs will return a total of 25% to the borrower in exchange for confirmations that the borrower has submitted (1) their bi-weekly Revenue Reports, (2) the 3rd and last Supervision Report and (3) pay back at least 10% of the total loan amount to the beneficiaries.

4

Operation Phase

BORROWER

SAP #1

SAP #2

SAP #5

SAP #6

SAP #4

SAP #3

Loan

At the end of the Operation phase, the borrower will have received 100% of their loan and reimbursed 30% or more. During that phase and before the loan period ends, MEnvesti will coordinate with the borrower to pay the remaining balance to the beneficiaries.

How it works?

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