Credit Capitalization Process The process of credit capitalization - from the organization, Research and Application of Alternative Financing for Development (RAFAD)
- Own Financing
- Maximization of resources
- Voluntary savings
- Compulsary subscriptions
- Income from various activities
1 =
own financing- Local financing
- local fund-raising
- Solidarity
- Activities/Campaigns/Collections
- Enterprises
1 + 2 =
total local financing- External and international financing, donations, loans
- gifts, subsidies, donations, swaps etc.
- NGO, bilateral aid, multilateral aid
- private sector, foundations, swaps.
1 + 2 + 3 =
total cash financing before participation.- Participation
- participation towards (venture) capital
- participation by investment companies
- share/shareholder subscription
1 + 2 + 3 + 4 =
total cash financing including participation- Bank Guarantees
- international bank guarantees
- local bank guarantees
1 + 2 + 3 + 4 + 5 =
personal capacity for negotiating with the bank- Bank Credit
- personal capacity + guarantees
- bank participation in credit granted (leverage).
1 + 2 + 3 + 4 + 5 + 6 =
Personal funds + bank credit received- TOTAL CREDIT AVAILABLE
= 1 + 2 + 3 + 4 + 5 + 6 + 7
- RAFAD's Address:
- 1, rue de Varembe - P.O. Box 117, 1211 Geneva 20, Switzerland
- Tel: +44-22-733 50 73 Fax: +44-22 734 70 83
- Source:
- Vincent, Fernand, Alternative Financing, Volume I. Geneva: IRED, 1995.
Hari Srinivas - hsrinivas@gdrc.org
Return to the Capacity Building Page
Return to the Virtual Library on Microcredit
