How One Startup Developed a Sales Model That Works in Emerging Markets

Harvard Business

A lot had to take place for this all to happen: I had a problem but knew a solution existed; I had access to information on my options; I had a physical destination to see my options in person; a trained employee was available to provide advice and recommendations; and I had a means of financing to bring this appliance into my life almost immediately. Customers show up regularly to take out loans, arrange payments, and track their finances.

The Microfinance Contagion Scenario

Harvard Business Review

In other words, at current repayments rates, any MFI with more than 12% of its portfolio in AP is at risk of insolvency. In a recent paper, Jonathan Morduch and Jonathan Conning explain the role of debt and equity financing in the microfinance industry. In microfinance, just as in corporate finance, one of the key ratios driving investors is the debt-to-equity ratio.