Microfinanzas PR Puerto Rico
Classification by the principal vulnerability dimensions of new clients taking out their first loan in 2015, and of total clients who had a loan with the institution at the close of 2015.

Later in the chapter we examine clients in more detail, what they do and how they have performed. The lines presented are in scale with the percentages.
1,112
Total clients
570
New clients
1_ According to Puerto Rico's official poverty line (distinguishing between rural and urban environments). Source: US Census Bureau. Clients whose net income (i.e. profit obtained from their micro-enterprise) divided by the number of members in the family unit (per capita) is no more than 3 times the poverty line of their corresponding country and type of environment (rural/urban).
2_ Clients with primary education at best, as proportion of all credit clients.
1,112
Total clients
570
New clients
Classification by the principal vulnerability dimensions of new clients taking out their first loan in 2015, and of total clients who had a loan with the institution at the close of 2015. Later in the chapter we examine clients in more detail, what they do and how they have performed. The lines presented are in scale with the percentages.


1_ According to Puerto Rico's official poverty line (distinguishing between rural and urban environments). Source: US Census Bureau. Clients whose net income (i.e. profit obtained from their micro-enterprise) divided by the number of members in the family unit (per capita) is no more than 3 times the poverty line of their corresponding country and type of environment (rural/urban).

2_ Clients with primary education at best, as proportion of all credit clients.
Measuring
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Our clients and our scale

Microfinanzas PR remains focused on serving low−income entrepreneurs in Puerto Rico. 64% of its clients are economically vulnerable.


The last few years have seen a growing trend in signing up new clients, particularly vulnerable clients.

Client economic vulnerability 1

1 According to Puerto Rico's official poverty line (distinguishing between rural and urban environments). Source: US Census Bureau. Clients whose net income (i.e. profit obtained from their micro-enterprise) divided by the number of members in the family unit (per capita) is no more than 3 times the poverty line of their corresponding country and type of environment (rural/urban).

New credit clients 2

2 Takes into account clients who joined during the year (new clients).

Profile of our credit clients 2
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Although nearly half of clients are women, there has been an increase in the proportion of male clients in recent years.

The weight of the loan in new clients‘ monthly sales at the outset has remained stable at around 6% in the last few years.

2 Takes into account clients who joined during the year (new clients).

Sales, disbursement & weight of credit installment 2 3 4
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The weight of the loan in new clients‘ monthly sales at the outset has remained stable at around 6% in the last few years.

2 Takes into account clients who joined during the year (new clients).
3 Average disbursement, calculated as the average first disbursement for new clients each year.
4 Weight of the installment calculated as a ratio average (installment divided by sales) of each client.

Average per capita micro-entrepreneurial net income, by client seniority 5
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Practically half of Microfinanzas PR‘s clients signed up in the last year and their per capita average monthly net income is lower than the average for the institution‘s clients as a whole.

Microfinanzas PR clients‘ per capita average monthly net income is 18% higher than the vulnerability line; however, an ample majority of clients (64%) lives on a lower net income.


5 Data of current portfolio as of December 31, 2015.

22% of clients served live on USD 12 per person per day.

Average per capita micro-entrepreneurial net income, by client vulnerability 5 6

5 Data of current portfolio as of December 31, 2015.
6 Poverty lines are for the urban environment.

Our clients’ enterprises

Economic activity 7

87% of clients operate in the tertiary sector (trade and services).

7 Data for current portfolio as of December 31, 2015.

Average monthly sales by vulnerability 7

7 Data for current portfolio as of December 31, 2015.

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Micro-enterprises’ employee breakdown 7

Clients' capacity to generate employment increases as their vulnerability lessens. 69% of micro-entrepreneurs servedby the institution create employment.

7 Data for current portfolio as of December 31, 2015.

Assets, liabilities and equity by vulnerability 8 9

8 Assets and equity calculated at the time of credit evaluation (i.e. not including the microcredit granted).
9 Data of current portfolio as of December 31, 2015.

Assets and average disbursement by vulnerability 9

The ratio of average disbursement as a proportion of assets is similar through all segments (6% of total assets), except for the non-vulnerable, where it represents 10% of total assets.

9 Data of current portfolio as of December 31, 2015.

Loan installment, expenses & margins (as % of sales) 10

However, as the client becomes less vulnerable, the weight of the installment in their sales falls.

10 Calculations base on clients reporting expenditures.

Our clients’ development

Average monthly sales (by cohort) (USD) 11 12
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Net income has grown faster than sales in recent years, suggesting an improvement in business management.

New cohorts are confirmed as having lower monthly sales and lower monthly per capita net income.

11 Data of current clients as of December 31, 2015, and that have had a data update in the last 12 months. The situation at outset is shown (data in their cohort year) and their situation at the end of December 2015. The outset is the moment that the first loan was granted.
12 96 existing clients from the cohort of 2013 are not considered relevant for the analysis.

Average monthly net income (by cohort) (USD) 11 12
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11 Data of current clients as of December 31, 2015, and that have had a data update in the last 12 months. The situation at outset is shown (data in their cohort year) and their situation at the end of December 2015. The outset is the moment that the first loan was granted.
12 96 existing clients from the cohort of 2013 are not considered relevant for the analysis.

Average assets (by cohort) (USD) 11 12
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11 Data of current clients as of December 31, 2015, and that have had a data update in the last 12 months. The situation at the outset is shown (data in their cohort year) and their situation at the end of December 2015. The outset is the moment that the first loan was granted.
12 96 existing clients from the cohort of 2013 are not considered relevant for the analysis.

Retention (by cohort) 13

Microfinanzas PR's client retention rate remains similar to previous years. On average, 70% of clients continue to bank with the MFI after a year, and only 40% do so after two years.

13 Percentage of clients in each cohort current as of December 31 2015.

Average disbursement per transaction (by cohort) (USD) 14

Average disbursement increases steadily the longer the client remains with the institution

14 Average disbursement, calculated as the total disbursement made in a year divided by the number of transactions by each client participating in the disbursement in said year.

Job creation (by cohort) 15

13% of Microfinanzas PR clients create at least one new job after two years with the institution and 22% have done so after four years.

15 Proportion of business from that current in each cohort, which has increased their payroll.

Average monthly sales by employee 16

16 Only clients who have at least one employee in charge are included.

Client improvement in healthcare (by cohort) 17

In the first four years with the MFI, 6% of clients served extend their healthcare cover.

17 Proportion of current clients in each cohort who have moved from no health insurance to having some, from public insurance to a mixed or private one, or from a mixed insurance to a private one.

Acitvity Data

Summary of activity 18
Total

Gross loan portfolio (USD)

1,924,276

Total disbursed in 2015 (USD)

2,246,296

Nº transactions in 2015

961

Average disbursement in 2015 (USD)

2,337

Deposits & other (USD)

NA

Nº Employees

20

Nº Offices

1

Clients receiving financial education

NA

18 Data as of December 31, 2015.