The Foundation for International Assistance (FINCA) International was founded in 1984 by John Hatch with the idea that giving loans to entrepreneurs in poor communities will be more effective if the funds are left to the management of entrepreneurs themselves.  FINCA developed a microcredit methodology known as village banking.  The idea came from the fact that in developing countries, small-scale entrepreneurs find it hard to develop their business because they lack resources and therefore, it is difficult for them to provide collateral to get loans.  Village banking tries to stop this vicious cycle by having the village member cross-guarantee each other in place of collateral, resulting to a system where social trust, and pressure, is at play to make the members become responsible debtors.

Now, FINCA supports over one million clients, mostly mothers.  Overall, their clients have an average of 97% repayment rate – a feat that beats even commercial loan records.  FINCA’s business model has set global standards in micro-finance.  The main objective is to break the intergenerational cycle of poverty through the business model they have improved over the years.  The model is open to donations and investment dollars under a transparent and sustainable framework.

Supporting FINCA through donations can be done online.  They also offer honor and memorial cards where supporters can send out e-cards after giving donations.  Help can also be extended by giving a loan through their Lend a Hand Program.  One can choose a borrower basing on the borrower’s business, the amount of loan needed and their story.  The money given for the loan once paid by the first borrower will be used by the next borrower.  Loan terms are, at the minimum, 16 weeks.  The money given does not only help one client but could extend to at least three clients in a span of one year.