MicroDreams.org :: Growing MicroBusiness. Empowering Dreams

MEDO Partner Selection

MicroDreams seeks only the highest quality microenterprise development organization (MEDO) partners who can demonstrate managerial excellence, client growth and a healthy loan portfolio. Potential partners must meet initial and ongoing financial, operational and managerial standards, and MicroDreams performs extensive due diligence to gauge potential partners’ qualification. Partnership screening includes:

Analysis of audited financial statements;
Analysis of loan portfolio, e.g. size, growth, portfolio at risk metrics, loss provisioning;
On-site assessment of management;
On-site assessment of operational risks and controls;
Review of detailed plan to achieve financial self-sufficiency;
Ongoing assessment of business and portfolio health.

Services
Upon full qualification, MicroDreams will determine the best means of partnering with the MEDO to work towards the goal of financial self-sufficiency and sustainability. MicroDreams is prepared to support partners via:

Direct grants: Grant financing is available for specific projects designed to enhance good governance. Examples include grants to upgrade systems, obtain an external audit or rating or support an expansion strategy.

Direct loans: MicroDreams will provide loans to promising MEDO’s who require funds to support their growing loan portfolio or undertake discrete good governance or expansion projects.

Loan guarantees: MicroDreams will help small MEDO’s establish quality relationships with commercial financiers. MicroDreams may act as a loan guarantor in order to reduce the risks and transaction costs perceived by commercial lenders.

Bridge financing: MicroDreams provides bridge financing for MEDO’s that require a short-term loan (3 months or less). An MEDO will find bridge financing an effective way to manage shifts in capital structure without shrinking the client loan portfolio.

MicroDreams’ financing services are critical for growth-stage MEDO’s. Without such support, many small, promising MEDO’s might be unable to continue deploying funds in their local communities. Entrepreneurs in the developing world rely on MicroDreams’ partner MEDO’s to access the funds necessary to support themselves and their families.