Microleasing - A means for scaling up microfinance?

Table of Contents

1. INTRODUCTION

2. MAJOR TRENDS AFFECTING MICROFINANCE

2.1. The Millennium Declaration

2.2. The Bottom of the Pyramid (BoP)

2.3. The Role of Innovation at the BoP

3. THE CURRENT STATE OF MICROFINANCE

4. LEASING AND ITS DEVELOPMENT IMPACT

4.1. The History of Leasing

4.2. The Evolution of Leasing in Developed Markets

4.3. Potential for Leasing as a Development Tool

5. MICROLEASING: THE LOGICAL CONSEQUENCE?

5.1. Characteristics of Leasing

5.1.1. Introduction

5.1.2. Types of leasing

5.1.3. Types of risk and risk mitigation strategies

5.1.4. The range of leased items

5.1.5. The client perspective

5.1.6. Provider perspective

5.2. The Leasing Environment

5.2.1. Potential leasing clients

5.2.2. Existing and potential leasing providers

5.2.3. Regulatory and legal situation

5.2.4. Accounting and taxation

5.2.5. Repossession

5.2.6. Rural Leasing and subsidies

5.3. Distinctive Features of Regular, SME and Micro- Leasing & Lending

6. SAMPLE CASES

6.1. Introduction and Relevance to this Paper

6.2. Background

6.3. Value Chain Analysis

6.3.1. Product ranges and target groups

6.3.2. Terms and conditions

6.3.3. Selection, approval and purchasing processes

6.3.4. Repossession, remarketing and residual value management

6.4. Success factors and institutional performance

6.5. Conclusions and Outlook

7. STRATEGIC IMPLICATIONS ON SCALING UP MICROFINANCE

7.1. Why MFIs should scale up

7.2. How MFIs should scale up

7.3. Final remarks

Research Objective and Core Topics

This thesis investigates the role of microleasing as an innovative tool for scaling up microfinance. It explores how leasing, traditionally used in developed economies, can be adapted for micro-entrepreneurs and small businesses in developing regions to improve their productivity and facilitate access to formal financial sectors.

• The intersection of microfinance and asset-based leasing
• Economic development potential for the "Bottom of the Pyramid" (BoP)
• Strategic and operational challenges in implementing microleasing
• Risk management strategies for microfinance institutions (MFIs)
• Comparative case study analysis of INDES Leasing and Grameen Bank

Excerpt from the Book

Summary of Chapters

1 INTRODUCTION: This chapter introduces microleasing as an untapped topic in microfinance, outlines the lack of available data, and explains the structure of the thesis.

2 MAJOR TRENDS AFFECTING MICROFINANCE: An overview of the Millennium Development Goals, the "Bottom of the Pyramid" economic potential, and the impact of information technology innovation on financial service delivery.

3 THE CURRENT STATE OF MICROFINANCE: Analyzes the diverse network models within the global microfinance industry and the competing philosophies regarding sustainable vs. profitable institutions.

4 LEASING AND ITS DEVELOPMENT IMPACT: Details the historical evolution of leasing and provides a rationale for why it serves as a powerful development tool for inclusive financial growth.

5 MICROLEASING: THE LOGICAL CONSEQUENCE?: Provides an in-depth analysis of microleasing characteristics, risk management, client and provider perspectives, and the regulatory environment for these specific financial products.

6 SAMPLE CASES: Uses the real-life examples of INDES Leasing in Chile and Grameen Bank in Bangladesh to evaluate practical successes, workflows, and challenges in microleasing.

7 STRATEGIC IMPLICATIONS ON SCALING UP MICROFINANCE: Discusses the necessity of scaling up operations for MFIs and provides final insights on how legislative and institutional frameworks can support future growth.

Keywords

Microfinance, Microleasing, Bottom of the Pyramid, Financial Inclusion, Risk Management, Asset-based Financing, Economic Development, SME Development, Grameen Bank, INDES Leasing, Capital Markets, Regulatory Environment, Sustainable Growth, Repossession, ICT.

Frequently Asked Questions

What is the core focus of this research paper?

The paper focuses on microleasing as a means of expanding the services of microfinance institutions to better support the growth and productivity of small-scale entrepreneurs.

What are the central themes discussed in this work?

Central themes include the adaptation of leasing models for the poor, the impact of information technology on business operations, regulatory requirements for leasing in developing markets, and strategies for risk mitigation.

What is the primary objective or research question?

The objective is to explore if microleasing can serve as a viable and effective tool for scaling up microfinance, moving beyond traditional microcredit to provide productive assets for economic growth.

Which scientific methods were applied in this study?

The study utilizes a combination of literature analysis regarding global microfinance trends and a comparative case study approach focusing on INDES Leasing and Grameen Bank to validate theoretical findings.

What topics are covered in the main section of the paper?

The main section covers the definitions and types of leasing, the specific risks faced by providers, the potential benefits for clients, and detailed workflows for approval and disbursement of assets.

Which keywords best characterize the research?

Key terms include Microleasing, Bottom of the Pyramid, Financial Inclusion, and Risk Management in microfinance.

How does INDES Leasing handle the potential default of a client?

INDES emphasizes contract normalization through penalties first, but they are prepared to initiate formal judicial repossession processes if restructuring or negotiation fails.

What role does the "Bottom of the Pyramid" play in the author's argument?

The author argues that the BoP represents an enormous, untapped market with significant purchasing power that is currently trapped by market inefficiencies; microleasing is presented as a mechanism to unlock this potential.