Fundación WWB Colombia (FWWB-Colombia), in the city of Cali, is a Microfinance Institution founded in 1982 to provide low-income microentrepreneurs access to credit on a permanent basis. As of July 2006, Fundación WWB Colombia has a portfolio totaling $109 million, with 135,000 active borrowers throughout Colombia in urban areas. Seventy percent of those borrowers are repeat customers, a testament to the success of the program. WWB-Colombia is a founding member of the Women's World Banking network.
FWWB-Colombia makes individual, micro-level loans with repayment terms and plans tailored to the microentrepreneur's type of business. It uses simple procedures, flexible disbursements, personalized service and collateral based on the circumstances of the user. More than 86 percent of these loans are for less than 4 million pesos ($1,600). WWB Colombia manages lines of credit for working capital and fixed assets and offers diverse financing methods based on the client's credit history.
Since 2004 the program has implemented a Customer Service line, "Fonoamigo" at 018000515656, and has published a monthly bulletin, "WWW al Día" to be a communication tool to report micro business news and promote commercial activity for microentrepreneurs and advertisers in trade and production.
Multilateral banks, such as IDB, CAF, and World Bank, as well as institutions such as Calvert Foundation, provide the lending capital to FWWB-Colombia.
FWWB-Colombia offers regional coverage for the Cauca Valley, Cauca, Cundinamarca and Colombia's coffee growing area. FWWB-Colombia currently has 42 offices and serves people throughout the entire country of Colombia. Within Cali, the location of their headquarters and 17 offices, there are approximately 1,222,976 micro-entrepreneurs. Of FWWB-Colombia's 135,000 active borrowers, about 67 percent are women. One hundred percent of FWWB-Colombia's clients are Latino, and 100 percent live in urban areas. These borrowers primarily work in three main sectors of the economy: commerce and trade (54 percent), production and agriculture (23 percent), and services (23 percent).
In June 2006, FWWB-Colombia had a portfolio of $109 million with 135,000 active borrowers. More than 86 percent of the loans were for less than 4 million pesos ($1,600). In fact, the average loan size was $720 and the on-time repayment rate was 99 percent. Also at that time, FWWB-Colombia had achieved very high efficiency levels with 500 loans outstanding per credit analyst, operational self-sufficiency of 155 percent and financial self-sufficiency of 134 percent. The effect of these investments has improved various sectors, such as education, transportation, women's issues and financial technology.
Luz Mery has managed a total of 9 loans with Women's World Banking that has permitted her to buy 2 trucks, two taxis, and a bicycle to distribute the coal and one motorcycle to do the collections. They are able to pay the rent of the warehouse, where they sell a total of 1,800 loads of coal per month, which represents a monthly income of 17 million pesos (US$7,400). With this income Luz Mery can finally afford to send her daughter to school. Full Story