Targeting short term loans to high potential market vendors

Microentrepreneurs around the world utilize informal credit at exorbitant interest rates. Many of these entrepreneurs have access to, but do not utilize microfinance because the timing of their cash flows does not match the microfinance repayment schedules. We are evaluating the impact of a short-term working capital credit product meant to flexibly match the cash flows of market two vendors at interest rates significantly above microcredit but far below the informal sources of credit utilized in these markets. We will evaluate the efficacy of community nominations, formal credit histories, and self reported business characteristics in identifying entrepreneurs with high- growth opportunities and reliable credit risks.