We only supply goods and materials that franchisees need on consignment (for example chickens and commercial feed) rather than providing cash loans. This avoids the cycle of debt that is associated with cash loans where multiple loans are taken out to meet repayments, or where cash loans are spent on consumables. And we carefully manage each microfranchisee's business risk, only increasing the number of chickens they raise per cycle in proportion to their business savings, to avoid indebtedness. Savings are built into the programme - each microfranchisee must save 50% of their profits for business capital or emergency funds. This means many have a financial buffer for the first time in their lives. No cash loans |
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