FAQ
1- Is SOFIHDES a commercial bank?
2- Does SOFIHDES awards grants in the framework of certain projects?
3- Why I shall contract a loan to SOFIHDES when I can get lower rates elsewhere?
4- Does SOFIHDES provide loan guarantees?
5- Does SOFIHDES deliver letters of credit?
6- Does SOFIHDES offers financing up to 100% for start-ups?
7- Can SOFIHDES finance an individual person?
8- Can SOFIHDES finance companies that import?
9- Does SOFIHDES only offerscredit?
10- How are the interest rates charged to customers?
11- SME do not usually have significant financial resources. How can they cope with the costs of technical assistance and training?
12-What are the companies that SOFIHDES considers as SME?
1- Is SOFIHDES a commercial bank?
SOFIHDES is not a commercial bank and, as such, is not authorized to receive deposits from customers. SOFIHDES finances its operations from its latest fund shareholders and loans from other financial institutions, local or foreign. It also issues bonds and can receive donations.
2-Does SOFIHDES awards grants in the framework of certain projects?
Not directly. SOFIHDES is a development finance institution established company offering business funding and bearing interest to be repaid under the terms of the financing contract. But it can sponsor certain projects or activities when the objective of the promoters is relevant to our institutional goals.
For more information about this, contact the Department of Marketing and Quality.
3- Why I shall contract a loan to SOFIHDES when I can get lower rates elsewhere?
If you consider your overall financial plan, not just the interest rate, you'll see that the SOFIHDES is very competitive and it offers customized credit terms, repayment terms tailored to the needs of your business and, often, funding levels higher than you would be offered elsewhere. On the other hand, SOFIHDES can strengthen its financing by offering technical assistance to ensure your business is better managed, more efficient and competitive.
Moreover, it can happen only after comprehensive evaluation of your project in all its aspects, you enjoy a rate of interest and financing terms more favorable than those you have proposed another financial institution.
4- Does SOFIHDES provide loan guarantees?
SOFIHDES does not directly guarantee loans. It may, however, doing so under the management of special programs implemented by some partners. Thus she has managed, in 1995, on behalf of USAID, a Guarantee Fund for Agro-industry (FGA). From 1999 to 2006, SOFIHDEShas managed, on behalf of USAID, the Guarantee Fund for Small and Medium Enterprises (FGPME). The purpose of these two funds was to facilitate the access of SMEs operating in certain sectors to credit.
SOFIHDES may, according to some requests, provide a performance bond.
5- Can SOFIHDES delivers letters of credit?
It is not there a normal operation. However, SOFIHDES is prepared to consider the feasibility of any action, which might facilitate the operations of small and medium enterprises in Haiti.
6- Does SOFIHDES offers financing up to 100% for start-ups?
Our funds are usually granted at this stage, up to 70% max. It is indeed imperative that the contractor who hires a project is also committed personally financially.
7- Can SOFIHDES finance an individual person?
SOFIHDES as a Development finance Corporation can only finance formal companies, whether individual companies or commercial companies.
8- Can SOFIHDES finance companies that import?
It can do, especially when the imported product is not in direct competition with one produced locally or is improved by adding local value.
9-Does SOFIHDES offers only credit?
No. SOFIHDES also offers, through its division SOFICONSEILS, technical support both strategic and operational.In addition, his division SOFITRAINING articulates its offer of training in business management for the benefit of owners, managers and corporate executives.
One of our major projects is, moreover, in the implementation of a product of venture capital for small and medium enterprises in Haiti.
10- How are the interest rates charged to customers?
This is a transparent process that we are committed to share with our customers.The interest rate, which represents the cost of money, is composed of the following components: the cost of funds and the risk premium. The cost of funds is calculated by integrating the conventional way that costs us money and a small margin management.
The consumer's risk is calculated, for its part, by considering various criteria such as the developmental stage of the business, its credit history, the skills of its management, internal organization, the availability of accounting system, regular production of financial statements, industry, geographical location, the existence of notes, guarantees tangible ... The weighting of these various elements provides the hazard rate. The combination of the cost of funds and the hazard rate is the rate of credit. This is a personalized process that constitutes an X-ray overview of the company, allowing a diagnosis. The company then includes the interest rate offered to him and knows at the outset that the improvement will be worth some criteria, review their loan rates a corresponding revaluation of the loan.
11- SME do not usually have significant financial resources.How can they cope with the costs of technical assistance and training?
We know the reality of Haitian SME. So we're trying to calculate costs as the most reasonable to allow as many companies or projects to benefit from our assistance.We are also looking to the extent possible, local or international partners, who may, through grants or program support, facilitate SME access to our programs.
12- What are the companies that SOFIHDES considers as SME? ?
There is no official definition of Haitian SME. To fill this void, SOFIHDES decided, in light of its experience and regional benchmarks to consider SME as a company whose number of employees is between 5 and 100 persons (Small Business: 5-50 employees - Medium company: 51-100 employees). It would also consider Assets as an indicator. Thus, it offers a balance amounting to 2.0 to 50.0 million Gourdes (from U.S. $ 50,000 +) to + U.S. $ 1,250 million) or, increasingly, used for defining the Haitian SME.