An international non-profit organization called Accion has been offering impoverished areas microfinance services for more than 50 years. A New York-based lawyer named Joseph Blatchford started it in 1961 after realizing the importance of giving small loans to business owners without access to conventional funding. Since that time, Accion has expanded its activities to over 30 nations, offering small businesses loans, financial education, and other services.
The goal of Accion is to enable people and communities to improve their own futures through economic development. By offering microloans to small firms who are unable to access conventional funding, it achieves this. The loans, which can range from $500 to $50,000, are intended to be used for working capital, inventory, equipment, and other costs associated with running a firm.
Borrowers must have a credit score of at least 575 to be eligible for an Accion loan, while higher scores may be needed in particular areas. An evaluation of a person’s creditworthiness based on their credit history is done through a credit score check. It considers elements including payment history, unpaid balances, length of credit history, and fresh credit applications. The likelihood that the borrower will repay the debt is increased with a higher credit score.
To offer its services, Accion collaborates with a number of different parties. These include financial institutions, governmental bodies, foundations, and other groups with a similar goal of advancing economic growth. Accion collaborates with a number of Community Development Financial Institutions (CDFIs), which are specialized financial organizations that offer funding to underserved communities, throughout the United States.
Applicants must submit an application with personal and business information, as well as financial records like tax returns, bank accounts, and credit reports, in order to be authorized for an Accion loan. The loan officers of Accion look over the application and assess the borrower’s creditworthiness, business plan, and ability to pay back the loan. If the loan is authorized, the borrower will get the money and start making payments right away.
In conclusion, Accion has over 50 years of experience as a pioneering microfinance company, offering loans and other services to small enterprises in disadvantaged areas. Borrowers must complete a thorough application that includes both personal and company information and have a credit score of at least 575 in order to be eligible for an Accion loan. In order to provide its services, Accion collaborates with a wide range of partners. It is also acknowledged as a CDFI in the US. Globally, millions of people have been aided in realizing their aspirations of entrepreneurship and financial independence thanks to Accion’s aim of fostering economic development through microfinance.