OPTIMIST – An Annual Review of GFA’s Microcredit Program

Since the end of 2010, GFA has been supporting the disbursement of microcredits through the Mikrokreditfonds Deutschland (German Microcredit Fund), an initiative supported by the German Ministry for Labor and Social Affairs in cooperation with the European Union and GLS Bank. Small and micro-enterprises, which are rated as ‘not creditworthy’ by their banks, are offered access to loans of up to 10,000 Euros (20,000 Euros for extension loans). GFA’s microcredit program, called OPTIMIST, has introduced internationally recognized microfinance methods to Hamburg and its surrounds. GFA’s focus lies on the personality of the entrepreneur and the future-oriented analyses of his/her business, using cash-flow-based and character-based lending.
 
OPTIMIST has been well-received in the market. Demand has been on the rise ever since the beginning of the project in 2010. In order to facilitate access to finance, small enterprises require tailored approaches that allow for the accurate appraisal of their businesses. GFA has developed into the leading microfinance provider in Hamburg, offering loans to those who are not adequately served by the banking sector. GFA is thus actively supporting entrepreneurship and self-employment in the region
 
OPTIMIST’s portfolio has grown steadily. Currently, GFA has disbursed more than 110 loans averaging 6,300 Euros. This clearly proves that cash-flow and character based lending practices are as applicable in Germany as well. OPTIMIST is a product for businesses in any sector, but GFA aims to support businesswomen and immigrant entrepreneurs in particular.
 
GFA intends to continue this positive trend. In 2012, the company will be expanding its marketing activities, building on a strong network of established partners. In addition, GFA will be participating in a nationwide marketing campaign entitled Mein Mikrokredit (My Microcredit), which further promotes microfinance to the general public. For more information, please visit OPTIMIST’s website at www.optimist-mikrokredit.de .

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