Applicants present their pitch and their business plan.
The Country Branch may choose to have a portfolio with stable companies where the social impact is employment and services requested for, and higher risk companies where the social impact is high.
Not yet approved applicants can be assigned RISEmember and pay the membership fee, and thereby receive training and knowledge sharing from other members, while strengthening their companies.
Agreement between Branch and loan-takers
Agreements are created by the local branches in close collaboration with each loan-taker. The agreement shall have the ownership of the loan-taker, be adapted to the precise situation and not be unnecessarily complicated.
The agreement between branches and loan-taker contains the below topics:
A. THE LOAN
- The interest
The interest will be charged the loan-taker at 10% per year, 7 % per 6 months, and 3% per month). The amount to be paid back and the dates of paying back are set within the agreement.
- Period of recovery:
1, 6 or 12 months.
- Repayment terms
Weekly, monthly or at the end of the borrowing period. The period to be agreed on and then debited from the borrower’s Account.
- Fees & RISEtalks
The loan-taker is obliged to attend RISEtalks, which are arranged by HR&S Country Branch. During these events the progress of the business is reviewed and discussed (please find more details elsewhere). The size of the fees for this arrangement are set at the time of signing this agreement and is dependent on the local situation at the time.
The loan-taker shall be able to save/deposit on the HR&S Country Branch bank account 10% of the loan prior to the disbursement of this loan.
- Guarantee & guarantors
The loan-taker has to offer a guarantee with relevant financial value and/or two guarantors, depending on the situation. The guarantors must have a stable income from employment and the loan amount shall be extracted from the guarantor’s salary account by HR&S Country Branch, if need be.
B. CONDITIONS PRECEDENT
Disbursement of the loan facility shall be subject to the following conditions:
- Delivery to the HR&S Country Branch of duly registered copies of the private company.
- Execution of this agreement by the HR&S Country Branch and loan-taker and its registration with the relevant Government offices, when relevant.
- Reimbursement or payment by the loan-taker of stamp duty, fees, commissions, and all charges required for this loan facility.
- Actively attending RISEtalks.
– The loan-taker usually attends minimum one RISEtalks prior, and pitch their business, prior to signing this contract.
– RISEtalks are attended by all RISEmembers, and the borrower must show capacity to work in a team, to be able to take and give advice, be active and have intrinsic motivation.
-The loan-taker shall provide proof of income; previous profit making and/or promising business plans including marketing research, customer out-reach and customer care.
- Pre-payment of 10%.
- Guarantees and/or guarantors made available.