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Joseph’s Forex Funded Micro Lending Business
Written by: PaxForex analytics dept - Friday, 11 January 2019 0 comments
I welcome all readers who take the time to read my story on how I started a micro lending business in the Democratic Republic of Congo, my home. I reside in Kongo Central’s capital of Matadi from where I now operate my business venture together with four partners. Micro lending is a very important source of funding especially in more remote locations across Africa. There are hundreds of millions un-banked individuals who rely on their governments for survival, but with a small capital infusion their life could change completely.
There is a growing number of companies who get involved in the micro lending business which often involves loans as little as $50. This is a meaningless amount to many, but believe me it makes a tremendous difference to small, remote African communities where this amount is often almost twice their monthly income. You may compare it to a $5,000 business loan in the Western world. This loan can transform a family who depends on government assistance into a small business which is self-sufficient.
While micro lending is very rewarding as you make a positive impact on communities, it is also very risky. Loans are usually made to the poorest of society and payback is not guaranteed. Defaults can be very high which is why traditional banking rules don’t really work in this field. This is where my four partners and I found a niche for our approach and it’s anchored in the forex market. With any lending business, capital is key and growing your capital base essential for the success of your business.
I feel very blessed that I came across PaxForex as this broker has truly made a difference not only for my business partners and myself, but indirectly to the hundreds of micro loans we have already granted since we officially launched in July 2018. Without PaxForex this venture would be nearly impossible. When the five of us started, we all had $2,000 in capital to invest in our micro lending business for a total of $10,000. This would have been enough for a few loans and then we would have to wither seek funding or end our venture.
Our approach is different than many others who are active in this sector. The potentially biggest difference is that we don’t charge anything for the loans. We lend $50 to $100 and we receive this amount back. No interest payments, no charges and no time pressure. We understand each situation is different and we do our best to assess each application carefully in order to lend to the right people. Now I understand that you may
wonder how we make money as we don’t charge anything for our loans.
Banks make their money by charging customers. We enter partnerships with our customers and they get affiliated with us. We work with PaxForex on three different levels. The first one is that all five of us have a personal trading account where we trade and earn money to cover our operating expenses. Each account is responsible for a different expense. The second one is that our micro lending business has a partnership account with PaxForex where we attract new traders and earn an affiliate commission. The third one is the execution of trades recommended by their expert analysts which has boosted our performance.
Each time we make a micro loan to a new client, we ask them to open a forex trading account at PaxForex using our link. Instead of paying us back the loan we made to them, we ask them to deposit it into their trading accounts. Then we guide them through the trading process in a Telegram group which we have created for all clients. We share which trades we are taking so that they may replicate them in their own trading accounts. With each loan we make, we don’t just help a family to get on a sustainable track but we also create a new long-term fore client.
This has several lasting benefits for everyone involved. The recipient of the micro loan doesn’t have to pay us back, ever, and keep the initial loan in their own forex trading account. With our guidance they keep earning money and slowly earn a second income stream which will further better their lives. We earn an affiliate commission with each executed trade and receive payback for the loan slowly over time and then so much more. It is truly a win-win partnership.
We not only make a micro loan, but we make a long-term investment into individuals, families and communities. Many are focused on making money fast and on how much they can earn. We have a long-term approach and so far are very pleased with our progress and how clients react to our offer. Since we have been in business for a little over six months, none of our loans have been repaid but some of our early clients have already made deposits and are trading. We are looking forward to further expand our business, none of which would be possible without PaxForex. Thank you very much for making such a big positive impact on thousands of lives!