Frequently Asked Questions

What does it cost to invest via WEKA?

There are no costs associated with subscribing or for investing through the platform. However, For the pilot we will be passing on transaction charges to investors. These costs are between 2-3% of the transaction amount.

How can I pay?

At WEKA you can make a payment with a credit card (VISA and Mastercard).

What is the minimum and maximum amount I can invest through WEKA?

For the #WEKA 100 pilot investments there is a flat investment amount of £100.

In which currency can I invest?

At WEKA you invest in GBP. You pay in GBP and get repaid in GBP

How safe are my personal details?

We adhere to strict safety requirements with regards to private and payment details and all sensitive data is sent through an encrypted connection (ssl). Also, data is stored (encrypted) in a secured facility provided by AWS: the world largest hosting service. Customer documents can only be retrieved by a secured connection and multi-factor authentication.

What happens if the local currency devaluates?

We work with our local partners and Companies to minimize exchange rate risks. As we grow, we are also looking into the possibility of hedging currency rates.

What interest rate do entrepreneurs pay?

We want to be the cheapest alternative for companies that need funding. Providing meso finance to entrepreneurs in often rural areas is a very labor-intensive process. It is comparable with the cost structure of microcredits. A huge number of loans with a relatively small size puts quite some administrative pressure on local partners. Also, these loans have to be monitored and obviously repayments have to be collected at the right time at the right place. Furthermore, partners have to pay local taxes and they have to take a provision at their balance sheet for possible non-repayments.

Since our SMEs do not have access to micro credits or bank loans, they often need to borrow from 'loan sharks' that may charge more than 100% interest per year. Even if they had access to micro credits, they would still be paying 30-50% annually. According to the New York Times (2010), the global average interest rate for microfinance loans is 37%.

On average, our SMEs pay around 1-3% interest per month.

What criteria should entrepreneurs meet with in order to secure a loan?

We work with our local partners to screen applicants thoroughly. At a minimum, the potential client must be or have:

  • At least 3 years in operation with a clear indication of sustainability;
  • Able to generate income to repay the loan (business must show at least 3 years of profitability)
  • Compliant with legal requirements such as the payment of required taxes, permits etc.
  • Free of any legal process involving non-payment of loans, non-compliance with legal contracts and/or involvement in illegal activities.
  • Verifiable experience in debt servicing (no past due loans with any private or government lending institutions or banks.
  • Socially relevant: the business offers clear and solid benefit to its stakeholders, such as: employment generation, care for laborer’s and other workers, payment of wages and taxes, adherence to principles of fair trade, care for the environment, concern for the community at large.

WEKA will never finance the following projects:
  • Projects that cause harm to people and the environment;
  • Projects that are illegal and immoral;
  • Projects that exploit and/or employ children younger than 16 years of age.

Which entrepreneurs can ask for a loan via the local partner?

Small and medium sized enterprises, 2-100 employees, in the area of farming, retail, wholesale, production or services. Applicants should have a 'moral compass' and have to prove they want the best for the enterprise, people, the community and the environment.

Do local partners investigate social impact of the provided loans?

Yes. Even though research on the impact of loans is very time consuming, our local partners execute impact studies. Apart from that we ask all our partners to enter the expected impact when uploading a new loan request. Finally, WEKA also executes their own research on the impact of investments.