Taller De Vida
Estella needs EUR 6,400 to refurbish a house to be able to offer more psychological support to minority groups.
- Local partner investment
- 6 new jobs
- 24 people reached
Taller de Vida (literally translated workshop of life) is an organization that works directly with children, youth, families and communities that have been affected by political social violence in Colombia. The centre has been operating for twenty years already.
The centres focus is psychological development and psychosocial interventions. Next to this, they would like to build capacity to improve the respect of human rights of minorities in Colombia in the long run.
At this moment Taller de Vida has four development programs to achieve its goals:
1. Reinventando la vida (literally: reinventing life): Psychosocial care and social development support for families who have been forced to leave the area where theyve lived and grew up.
2. Proyecto bamboo (the bamboo project): Social integration of children who were kidnapped by armed groups.
3. Corazon de cebolla (literally: union heart): Projects to prevent children from being exposed to armed conflicts and violence.
4. Tejiendo red (weave techniques): The development of social organizations and or social enterprises. At this moment products such as wallets, diaries, picture frames and other small articles are being made. The products are being made from paper, dried seeds, small pieces of fabric and dried flowers. The products are sold in the 'Taller de Vida' webshop. At the same time this is an increasingly important source of income to finance the projects Taller de Vida is running.
Taller de Vida is well known in Colombia and has already achieved a lot in the past twenty years. However, they would like to accomplish more for the people they are working with. The loan will be used to set-up two new projects: to refurbish a new location (a house which they received as a donation) to expand the current activities of the centre and to procure tools and raw materials.
Lendahand and its local partner grant this loan to Taller de Vida payable in 24 months, to be able to make this ambition reality.
- Company nameTaller De Vida
- OwnerEstella Duque Cuesta
- LocationCundinamarca, Bogotá
Impact of this project
- With this investment 6 jobs are created
- With this investment 24 people are reached
About the risks
What are the risks of investing money?
Our local partners cover the risk of currency exchange rates and loan defaults. They do this by maintaining financial reserves for this purpose . In addition, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to funders, our local partners face risks of their own that could effect their ability to secure a loan. These include: - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
If you invest direct in a company, hence not via a local partner, risks of default are not covered. As the risk that comes with direct lendings is generally higher than an investment through a local partner, the interest rate is also higher.
There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding loans at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.
How does Lendahand minimize the risks?
Local partners must adhere to our mission and work with us to provide loans that are affordable. This insures that local entrepreneurs have access to financing that allows them to grow their business. A local partner must also have a track record. In other words, they must have proven themselves as a meso-credit provider for SMEs. This means (for instance) that the partner must have a solid credit portfolio, along with enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the partner and how robust their (internal) procedures are. Finally, the loans that a local partner receives via Lendahand must be in proportion to the partner's total balance sheet. A healthy balance between effectuating influence and independence is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via email@example.com.
When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenario's the local partner is contractually obliged to comply with these demands.
Lendahand will always conduct due diligence when a Company requests for a direct loan. To provide more insights on risks, an independent partie comes in to perform brief analysis on direct loans. The results can be downloaded on the project detail page of the direct loan. However, this analysis serves primarily as a tool for your own opinion and conclusion. Pay attention to the fact this analysis is not an investing advice.
Does Lendahand provide guarantee on the loans?
Normally we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason Lendahand only selects financially solid partners based on strict criteria.
Also, for most direct loans no guarantee is provided. For these investments currency risks are covered however.
Sometimes - and only for some direct investments in Africa - our partner Sida, part of the Swedish government, will provide a guarantee with a maximum of 50%. If this is the case, it will be indicated explicitly.
Does Lendahand have a license or exemption?
Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements of EUR 125,000 following its license as required by De Nederlandsche Bank (DNB).
Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year.
How safe are my personal details?
We adhere to strict safety requirements with regards to private and payment details. All sensitive data is sent through an encrypted connection (https). Also, data is stored (encrypted) in a secured facility provided by AWS: the world largest hosting service. Customer documents can only be retrieved by a secured connection and multi-factor authentication.
What happens if the local currency devaluates?
Our local partners and Companies bear the exchange rate risks. We settle the loan, 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) would go bankrupt trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your personal 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 investees up until the final repayment of the last project has taken place.
Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses who have trusted money and or financial instruments (such as notes or options) to a licensed bank, investment firm or a financial institution in case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to EUR 20,000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
Why is my money going via Intersolve EGI?
What happens when a local partner goes bankrupt?
About Eclof Colombia
|Number of companies in portfolio||182|
|Write-off ratio last 12 months||0.33%|
|% investment amount in arrears (>90 days)||0.87%|
|% investment amount in arrears (>180 days)||0.56%|