Medina & Mechel Fish 2
With a loan of EUR 3,800 Mechel will be able to purchase frozen fresh fishes to double her capacity.
- Local partner investment
- 1 new job
- 4 people reached
Mechel Cruz of Baliuag Bulacan inherited her parents business in 2004. The business is engaged in distribution and retailing of different fresh frozen fish like Galunggong (Round scad), Matang-baka (Big eyed scad fish), Tulingan (Tuna), Tahong (Mussel), and other fishes that she purchases daily in Navotas port in Manila, a fish porter. It was named Medina and Mechel Fish Vendor and Dealer. In 11 years of handling the business, she was able to have four outlets in Baliuag Public Market in Bulacan, where fishes are retailed. She also distributes some to other fish vendor in Public Markets in Bulacan.
With her first loan to NPFC, she has expanded her market in Pampanga Public Markets and added Bangus (Milk Fish) and Pink Salmon in her fish products. Mechel has been separated to her spouse for eight years. She resides with her mother in Bulacan together with her two children. She maintains a total of 22 workers. Salary rate of workers depend to the task and it is given either daily or weekly. As a benefit to her workers, she provides them free whole day meal, accommodation, and medical assistance during emergency cases. Aside from her regular employees, she has four rollers that sells fish using motorcycle with side car. Her parents being christians, built their own church, where during calamity, they prepare relief goods for those who were affected.
Loan proceed will be use to purchase frozen fresh fishes to double her capacity to be able to saturate Baliuag and other towns public market. This will be provided by LendAHands partner NPFC.
|Sector||Wholesale / Retail|
Impact of this project
- With this investment 1 job is created
- With this investment 4 people are reached
About the risks
What are the risks of investing money?
The risk level depends on the specific project. Local partners cover the risk of currency exchange rates and defaults on Local Partner investments. They do this by maintaining financial reserves for this purpose. Aside from that, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to investors, our local partners face risks of their own that could affect their ability to secure your investment. These include - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
With direct investments, risks of default are not covered. As the risks are higher, so are the interest rates.
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How does Lendahand minimize the risks?
Every local partner must share our social mission to ensure local entrepreneurs can access affordable financing, allowing them to grow their business. Local partners must also have a 'track record'; they must have proven themselves as a reliable credit provider for SMEs.
For instance, this means a solid credit portfolio and enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the portfolio company and how robust their (internal) procedures are. Finally, the investments must be in proportion to the total balance of that portfolio company. A healthy balance between effectuating influence and being independent is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via firstname.lastname@example.org.
When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenarios, the local partner is contractually obliged to comply with these demands.
Lendahand always conducts due diligence when companies request funding. The results can be downloaded on the project detail page. However, this analysis is not investing advice.
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For most direct investments, there is no guarantee. However, currency risks are covered.
Sometimes, and only for some direct investments in Africa, our partner Sida, part of the Swedish government, will guarantee a maximum of 50%. Read here more about guarantees with Sida. Projects with Sida guarantees are indicated explicitly on the project page.
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What happens if the local currency devaluates?
Our local partners and companies bear the exchange rate risks. We settle the investments, redemptions, and interest payments in euro.
Does Lendahand use a third foundation fund?
What happens with my money if Lendahand goes bankrupt?
If Hands-On BV (containing the brand name Lendahand) went bankrupt, trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then, in consultation with a trustee, handle all repayments between the investors and entrepreneurs until the final repayment of the last project has taken place.
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Why is Intersolve EGI handling my money?
What happens when a local partner goes bankrupt?
|Write-off ratio last 12 months||14.20%|
|% investment amount in arrears (>90 days)||19.90%|