We Don’t Do Loans. We Do Leverage.

What it means to empower the poor

Five Talents does not charge interest and does not provide loan capital to individuals. We used to do this, but over the years Five Talents has developed a model that we believe is much more effective at empowering the poor.

 Members of a savings group for peer to peer lending in Burundi

Understanding Peer to Peer lending

Instead of using donor's gifts to make loans that could make a new entrepreneur dependent, our partners use funds donated to Five Talents to provide training and to establish and equip local groups to save and invest their own resources. These groups then provide a platform to launch and develop locally-owned businesses. This approach is effective and sustainable.

Why Leverage Lifts More Out of Poverty

Even in the world's poorest and most vulnerable areas there are existing resources that can be leveraged as communities learn to save and invest together. In Five Talents savings groups, an individual may start by saving as little as 50 cents a week. As he or she saves together with neighbors and friends in a small group, each person learns business skills and tools for financial management and business development.

Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”

-Archimedes

After a short period of saving together, the group has enough funds to begin offering loans to its members. These start as small loans of $5 to $50. But these small amounts are enough to help each family start or expand their own small business. Over time these businesses grow, and the new entrepreneurs repay and recycle the funds in growing increments throughout the group.

 Peer to peer lending empowers the poor

Peer to peer lending empowers the poor

The Difference Leverage Makes

By investing in training, Five Talents can mobilize and leverage local knowledge and skills to build sustainable businesses. By working with communities and in small groups, Five Talents can leverage existing social networks and capital. By using a “savings-first” approach, Five Talents can mobilize and leverage local resources to create long-term financial solutions.

Leverage means that every dollar given to Five Talents reaches more families, accomplishes more good, and delivers lasting results.

So, go ahead, make a gift to Five Talents and let your impact be leveraged: