The Peruvian financial ecosystem has begun to look with renewed attention at women entrepreneurs, historically a segment with less access to credit. They have proven to be a fundamental driver of the economy, especially in the field of micro and small businesses.
Today, commercial banks, municipal and rural banks, as well as microfinance institutions, have designed specific products that go beyond the simple offer of money: they seek to generate a positive and measurable impact on the lives of women and their families, promoting their economic autonomy through comprehensive financing.
Created for women
Although both are financing tools aimed at small businesses, it is vital to understand the difference between traditional microcredit and loans with a gender focus.
Traditional microcredit refers to small-amount loans, ideal for immediate working capital, purchasing inventory, supplies, or for the initial start-up of an incipient business. They have short terms and focus on daily or weekly cash flow repayment capacity. Its mission is the financial inclusion of the low-income population.
Gender-responsive loans are designed for sustained growth and productive investment. Clauses are incorporated to close the gender gap, such as the incorporation of preferential rates. The terms are more flexible and extensive, allowing better investment and repayment planning. They are usually given by a single signature and in many cases avoid the need for the spouse’s signature.
In addition, they are accompanied by non-financial advisory programs, recognizing that the lack of business knowledge is as big a barrier as the lack of capital.
Non-traditional requirements and guarantees
At a general level, access to credit depends on key factors that entrepreneurs must manage, for example:
– Credit history: The most basic and non-negotiable requirement is to have a clean credit history, that is, a 100% normal rating in recent months. Financial institutions look for responsible borrowers.
– Identification, proof of address and payment: You must be of legal age and have your own business, demonstrate its existence, as well as the ability to generate income. To corroborate registration addresses, canceled public service receipts (electricity, water) must be presented.
– Business plan: Although it is not always a formal requirement for an initial microcredit, it becomes essential for larger loans. Demonstrating the viability of the venture, the clear use of funds and the repayment strategy increases the chances of obtaining better conditions.
One of the biggest challenges for women is the lack of traditional guarantees, property titles, for example. To overcome this obstacle, financial institutions have turned to innovative models such as:
– Solidarity groups: It consists of a group of 10 to 25 women granting each other a mutual solidarity bond. If one fails, the others must respond. This mechanism promotes collective responsibility and replaces the individual financial guarantee.
– Personal or business guarantee: Instead of mortgages, the guarantee of the assets acquired with the credit (machinery, equipment) or a simple signature is accepted.
– State guarantees: Government initiatives such as guarantee programs for MSEs led by women, through COFIDE, reduce the risk for the financial institution, allowing them to access better credit conditions with a lower requirement for guarantees.
Beyond money
Sustainable financing of women’s businesses is not achieved only by providing credit. Comprehensive advice and training is a pillar that entities have promoted, recognizing the direct link between business skills and long-term repayment capacity.
In this regard, banks, municipal savings banks, rural savings banks and allied programs offer:
– Training in basic accounting: Book management, recording of income and expenses, and formalization.
– Digital marketing: Use of social networks and virtual platforms to expand the market beyond the physical environment.
– Cash flow management: Crucial skill to anticipate and manage business liquidity.
– Financial education: Debt management, savings, and the concept of productive investment.
Non-financial advice is the component that elevates a simple loan to a strategic investment in the human capital of the female entrepreneur. Financial institutions, especially Peruvian savings banks and microfinance institutions, have understood that the risk of non-payment not only lies in the economic situation, but also in the lack of tools to manage growth.
Therefore, this advice is offered through structured programs, workshops, virtual/in-person training and, in some cases, direct mentoring, with the aim of promoting the sustainability and formalization of businesses. They are the key to sustainability, since they transform the entrepreneur into a conscious businesswoman who makes informed decisions, plans growth and can better face adverse economic situations, as demonstrated during the pandemic.
Growth and autonomy
All of these strategies aimed at female entrepreneurship have a positive impact that transcends the business. It becomes a factor of social development and empowerment.
Successful credit grows the business and gives women their own, direct and legitimate source of income, improving their decision-making capacity within the home and their status in the community.
In turn, this results in family well-being, since it is proven that women reinvest a greater portion of their income in the education, health and nutrition of their children, which generates a virtuous cycle of community development.
The expansion of a small sales stand to a commercial premises, the purchase of more efficient machinery or the hiring of more staff are also tangible indicators of this.
growth.
