Giving the necessary capital

ECONOMY

by THE OLBIOS TEAM

MYC4 and its founder Mads Kjaer believe that “business must be for a profit, but profit must be for a purpose,” and has applied this mind set to help improve access to capital for African entrepreneurs. MYC4 is, via Internet, providing businesses in Africa with direct access to capital with fair and transparent terms. An average loan given by MYC4 is €1,700, which is crowd funded by fifty online Investors. These investors find a business that they like and become a part of its development; they can lend as little as €5. How does it work? An African entrepreneur wants to apply for a loan in order to grow his small business. He goes to a local MYC4 partner to present his project, how much money he needs, and how much he can pay in interest. The MYC4 partner makes a thorough evaluation of his business to make sure it provides healthy economic prospects for growth and can repay the loan and its costs. If the MYC4 partner approves the loan, it is uploaded to the MYC4 website. All users can now read about the entrepreneur and view his application for funding. Finally, there is an auction on MYC4 where users can bid with the amount they wish to lend to the small business and at what interest rate. They do not have to lend the entrepreneur the full amount. Several people can participate in the loan. It is the people who offer the lowest interest rates that end up lending money to the business when the auction is over. When the auction closes, MYC4 transfers the funds to the local partner and the entrepreneur receives his loan. As the business grows, he starts paying back his loan with interest to the investor. MYC4_website Website: http://www.myc4.com/ The founder Mads Kjaer

 

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