Fact: A borrower’s integrity remains the most valuable collateral
In 2017 YieldRock was approached by a then-prospective customer upon the recommendation of an existing one, with the intention of getting a credit facility for his business, which is located in the South Dayi district of Volta region, Ghana. During the due diligence stage, a few interesting discoveries came to light. Having worked with an FNGO in the past, this brave startup founder departed the comfort of Accra, away from his wife and child, to stake a chance on building a new business in Kpeve, the district capital of South Dayi. Even more impressive was his forthrightness and willingness to disclose risks related to his business operations, something quite uncharacteristic of MSMEs due to the information asymmetry problem. It’s been over 5 years since our business relationship with this customer commenced, and we have no regret in trusting him with capital. W are proud to say that this customer is one of the few stars, for whom we have deployed substantial capital without the burdensome requirement of having collateral. His integrity and trustworthiness have proven to be much more valuable than any other collateral we could have gotten.
Lesson: Truth, respect and responsibility are the most prized assets.