We want to create growth and integration by offering micro-loans on business viable terms to immigrants ready to start-up or expand a business in Sweden. Favafond would be providing funding alternatives for a category of potential borrowers not finding many alternatives as of today.
We are convinced that there are more people like us, who want to contribute in creating not only financial but also human values with our savings. The funding will be raised through savings by retail and corporate investors through investing in an Alternative Investment Fund.
The credit assessment for the loans will be based on an assessment of the business plan, the personal character and the capability of the entrepreneur and partly on an assessment model based on alternative data available for this target group (ie not based on data for credit and salary history otherwise commonly used).
The financial goal in the business is to generate return on investment for the fund investors and profit for Favafond. When setting the interest rate, the risk and the best of interest for all parties involved – borrowers, investors, Favafond and the distributors/advisors – should be balanced in order to create a win-win situation.