Banks lend to the most profitable customers. CDFIs lend to customers that are seen as less-profitable, more-risky. They lend smaller amounts, they build relationships with customers and, in most cases, also provide support and advice. This could be giving money management advice to a customer, or helping a social enterprise with its business plan. It is these value added services that are a core part of the CDFI’s social mission, and a core reason why they are effective at helping enterprises and families.
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We are the voice of the Responsible Finance industry