Our Financial Services


"With Root Capital, La Red could finally buy from our farmers without having to constantly look for small amounts of money to borrow throughout the harvest...now we finally have the answers we were always hoping for.  We are very thankful for that help.”

Carmelo Fransisco Batista  
Cooperative Member
La Red Guaconejo
Dominican Republic

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Meeting the Needs of Small and Growing Businesses

Root Capital is uniquely positioned to meet the needs of rural grassroots businesses.

• Our streamlined loan evaluation system enables us to approve and disburse a loan within weeks of receiving an application.
• We have deep industry relationships throughout the value chain, enabling us to understand and leverage the dynamics of the entire market.
• We have developed an effective lending model and a systematized risk management system based on ten years of operations.
• Our regional office structure enables us to efficiently service our existing clients and respond to the needs of potential borrowers.
• Our local lending and financial education and training staff understand the business context and culture.
• We hire field staff with direct experience working in management positions of rural grassroots businesses. This equips our team with first-hand familiarity with the challenges of running a financially viable business and an understanding of the role credit can play in helping it improve its operations.
• We collaborate with other organizations that provide technical assistance in the development and improvement of management, marketing, and agricultural practices.

Loan Products

Root Capital aims to extend financing to businesses not currently reached by commercial lenders without distorting the market through interest subsidies. We primarily lend to enterprises with sustainable production practices. During our screening process, we examine market linkages, financial and export history, economically sustainable production, environmental and social certifications, social development programs, and gender equality.

We offer:

• Short-term trade credit loans:
  terms up to one year that are generally oriented around a harvest or production cycle. These loans are typically used by borrowers to cover costs during the months between purchasing raw product from their farmer and artisan suppliers and receiving payment from their buyers. Root Capital practices cash flow-based lending—we lend against purchase orders without requiring high levels of physical asset collateral.
   

• Long-term fixed-asset loans:
  terms of up to five years for investment in processing equipment, infrastructure, and general operations. (We offer loans in dollars, euros, or pounds sterling. Specific loan terms available upon request.)

Financial Advisory Services (FAS)

Root Capital provides financial training to grassroots businesses, enabling them to enter the lending process or to strengthen their ability to raise incremental capital.

We provide pre-loan technical assistance to potential borrowers and comprehensive financial management training to existing borrowers. *Our training curriculum focuses on financial planning, reporting, and controls; accounting; managing external credit; and developing and managing internal credit.

• For potential borrowers, we provide assistance in meeting loan application requirements and developing core organizational capacity.
   

• For existing borrowers, we provide customized financial management training to strengthen their ability to raise incremental capital.

To receive more information about FAS or to inquire about eligibility, please contact advise@rootcapital.org.

*Available to potential and existing borrowers in Southern Mexico, Central America, Peru, or East Africa.