Access to Capital
We provide funds for loans and microloans and work with our partners on innovative projects that tackle gaps in lending systems.
Global Funding Gaps
The World Bank estimates the potential access to capital demand for micro, small, and medium enterprises (MSMEs) in developing countries at $8.9 trillion. When compared to the current credit supply of $3.7 trillion, this leaves a capital gap of $5.2 trillion.
While the market will organically solve many access gaps, certain communities are not positioned to take advantage of the opportunities in the marketplace, as their access gaps are simply too great. This is where we have chosen to make a difference: building bridges for the marginalized so they can prosper in the broader market and take advantage of the opportunities it affords.
Small businesses represent 90% of all companies and generate nearly 70% of jobs and GDP globally. They are the bedrock of developed and developing economies.
How it Works
Partnerships providing access to capital
Our goal is that every partnership can evaluate the access to capital gaps for the markets they serve and implement strategies to close such gaps directly or through strategic partnerships. Within our 80+ partnerships globally, 30 partnerships are actively working to close the gap through different vehicles: microfinance, savings and lending groups, and strategic partnerships with lending organizations.
Network of partnerships
No one organization can provide access to everything an entrepreneur needs to thrive in the marketplace. This is why we seek to connect every partnership to a broader network, where the potential for impact at a system level is greater. By ensuring each has access to resources, expert strategic partners, cross learning, and exchange of best practices, they can better close gaps for those they serve.
Our Programs
We offer the following tools to our partners who are driving impact in the access to capital space:
PW Loan Fund
This fund provides loans to our lending partners to expand their capital base for lending to entrepreneurs, and trade financing for agricultural associations to connect poor and marginalized farmers to global markets.
FinAccess Pilot
In September 2022 we began piloting a system-level initiative aimed at improving stability and liquidity for lenders, lowering interest rates, offering longer-term loans, and providing more diverse financial products for loan recipients. We achieve this by buying loans from Micro Finance Institutions, Savings & Credit Coops, and similar organizations, increasing their capital base for on-lending and incentivizing them to offer better financial services for entrepreneurs in poor communities.
The Impact
Construction and Car Repair in Honduras
Every day for ten years, Nimrod labored to construct houses of cinder blocks and concrete. Yet for all his hard work, he could not afford a house of his own. A local Honduran partner connected Nimrod with the access to capital he needed to launch his own construction company, which today employs 7 workers. Through additional loans, he’s opened an auto plaza where you can get your car washed, detailed, painted, repaired, and more.
Transportation Services in Nigeria
Esther and her husband needed an extra source of income to feed their four young children and so, armed with a single car, she founded a transportation service. Through a loan provided by a local Nigerian partner, Esther was able to expand her business into a fleet of nine vans that employs 11 people, providing transportation services to five major cities in Nigeria.