Sustainability
Reaching the "last mile", the poorest of the poor, has long been a challenge for traditional microfinancing. High administrative costs and poor repayment rates have made ultra-small loans unsustainable at scale…until now.
MaxBalo solves this through our Reseller Model.
How We Reach the Poorest Communities
The Reseller Model enables MaxBalo to loan capital to resellers who act as intermediaries between MaxBalo and unbanked communities. Resellers provide collateral up front, then distribute smaller amounts to end borrowers in their networks.
This shifts the default risk away from the unbanked and onto the reseller, who is incentivized to recover the funds efficiently.
Reaching the Last Mile, Sustainably
Our Reseller Model unlocks access to capital for the unbanked without compromising efficiency or trust.
MaxBalo’s Reseller Model is a breakthrough approach to financial inclusion. Instead of managing thousands of individual microloans, we work with trusted community-based resellers who distribute capital directly to underserved populations. These resellers provide upfront collateral, take on the risk, and use their local networks to vet borrowers and ensure responsible lending.
This model dramatically reduces administrative overhead while increasing repayment rates and community engagement. The Reseller Model allows MaxBalo to reach deeper into informal markets without carrying the operational burden of thousands of microloans. By leveraging existing community networks through resellers, we reduce overhead and increase trust and repayment.
How We Keep Interest Rates Low
To ensure capital remains accessible and affordable, we implement strict interest rate caps for all resellers. These caps are enforced through real-time loan data monitoring and compliance audits. Our strategy includes a phased reduction of permissible lending rates as our capital efficiency improves. Over time, we aim to influence broader market rates by scaling operations and driving down the cost of capital across African markets.