FICO SCORES

There are many websites explaining what FICO scores are, trying to get you to pay for your credit reports (which are free), and trying to rope you into paying for scammy services that claim to rebuild your credit in days.

Hopefully most people know that you have the right to request your credit reports for free each year. You can do this via the internet or through the good old fashioned US Postal Service. Also, there is not way to instantly improve bad credit. However it is possible to start rebuilding your credit. To begin rebuilding your credit there are two major things you need to do: pay everything on time and have positive things reported on your credit report.

It is really depressing to be rejected for pre-approvals, rejected for financing, rejected for credit cards, etc. This is doubly depressing if you do not have savings to fall back on. For someone with an entrepreneurial spirit, this can feel like an inescapable trap. How can you start a business if you don't have at least a little bit up front?

This is where microfinancing comes in. 3pgroup will review each entrepreneur's file extensively and take into consideration more than just the FICO score. Additionally, 3pgroup will report to the major credit reporting agencies your payment history. Not only will the microloan give you a chance to jump start your business, by reporting positive repayment information to the credit bureaus, this will position you to expand your business via traditional financing in the future.

The World of Microfinance

Microfinance is a thriving sector of credit lending that is primarily focused on the poor with the objective of smoothing consumption and lifting individuals and families out of poverty. It is the objective of 3Pgroup to successfully bring Microfinance to the western world and to also expand on work that has been done internationally.

3p is defining poor internationally as individuals who live on $1/day or less. Within the US, the povery level could be defined in many ways - this will be explored in a later post.

As with any pre-launch, it is beneficial to know what's out there: what organizations exist, how are they structured, what do they do? I came across an interesting organization called Freedom from Hunger ( www.freedomfromhunger.org).

This great organization makes loans to impoverished women in Latin America, Africa and Asia. They don't just make loans, however; they also provide educational programs. The organization started with the objective of eliminating world hunger. The method they chose was by providing these small microloans to help women develop sustainable businesses that could break the cycle of poverty and eliminate starvation for themselves and their families.

What I like most about this organization is that they combine education with microfinance. And that is a program element that 3p Group will definitely incorporate. The question remains that in the western world, what educational programs would be most useful?

Stay tuned! As always, we welcome your comments and posts.
Find us on twitter @3pgroup!

Pre-Launch

Microfinance, in my opinion, is one of the best anti-poverty mechanisms out there.  Via microfinance, low-income individuals are able to smooth consumption over time and some are even able to make forays into entrepreneurship that lift entire family groups out of poverty. 

Microfinance is not as developed in the Western world as it is elsewhere.  However, there is a need for it - especially with the current economic crisis.  I intend to utilize this method locally to combat poverty and help bridge the gap between the haves and the have nots.

I welcome your comments and suggestions!