Harvest hope pitch deck

2
Grant Valentine
Information Systems
Billy Affleck
Finance
Korean
Ashley Affleck
Therapeutic
Recreation and
Management
Dallin Vosti
Business Strategy
Statistics
Connor Pulsipher
Finance
Nonprofit Management
Management Team
ConclusionProblem FutureSolutionIntroduction

33
Harvest Hope extends affordable
group-loans to small business owners
in East Africa.
What does Harvest Hope do?

Since 2018
❖ Closed all 1st-round loans
❖ Issued 15 more loans remotely
❖ Automated our screening process
❖ Billy and Ashley secured internship with
Samhita Development Network
❖ Cemented partnership with Marafiki -
Team will travel to Tanzania
44

5
Agenda
1
5
2
Introduction
Problem
Conclusion
3
4
Solution
Future

Our businesses save $0.05 a day
(it would take them over 13 years to
save $500)
No competitive advantage or
differentiation between similar
businesses
Understanding the problem
66
Businesses can’t grow organically Business owners can’t get loans
It’s difficult for small business owners
to qualify for loans since they have
little savings and collateral
Banks and MFIs offer interest rates up
to 120% annually

Screen Potential
Borrowers
Use survey to screen
potential borrowers to
discuss their ideas and
assess the risk we take
from the loan.
Business Model
7777
2 3 4
Come to Terms
After a decision has
been made to lend
money, terms of the loan
are discussed. This
includes life of the loan,
amount, and interest
rate.
1
Loan is Provided
Money is sent to the
M-Pesa account of
the borrower
through the app
Wave.
Follow-up
Follow-up with the
borrowers is done
over the phone and
through email to
make sure they are
on track.
Business Growth
The borrower’s
business is able to
grow as they reap the
benefits of what the
loan provided.
77

Harvest Hope’s 4 Points of Innovation
88
Key advantage: Ability to screen candidates remotely
Biggest obstacle: Develop a screening process more effective than in-person visits
Screen candidates with
survey
Key advantage: We will be using the most effective microfinance techniques
Biggest obstacle: Implement these best practices in a new environment
Implement best practices
into East Africa
Key advantage: Credit provides extra incentive to pay back loan
Biggest obstacle: Provide enough incentive for clients to continue paying back loans
Building credit
Key advantage: Training they receive makes them lower-risk candidates
Biggest obstacle: Limited by number of Marafiki’s clients
Partnership with Marafiki
Africa

Evidence of success
99
Issued 29
small-business loans
93.3% loan
repayment
100% loan utilization
Partnership with
Marafiki

Two-Methods for Customer Acquisition
1010
Market through local churches Work with clients of Marafiki Africa

Meet Christine
1111

Create a new process based
on set requirements to
properly screen potential
borrowers to mitigate risk.
Develop new
screening process
Work with referred
borrowers to test our new
screening process and refine
how to find trustworthy
borrowers.
Beta testing with
potential borrowers
Leverage our relationship
with Marafiki Africa to
create relationships with
small businesses.
Expand Harvest
Hope to Tanzania
Utilize social capital from
previous relationships with
Marafiki Africa and small
lending groups to protect
loans.
Extend loans to
new network
01 02 03 04
The future of Harvest Hope
With few costs, Harvest
Hope’s margins can easily
be increased through
greater scale.
Scale to increase
margins

Financials
1313
Harvest Hope has issued $8200 in loans
We’ve received $4000 in payments
We charge 12% annualized interest rates

Conclusion
1414
Conclusion
Situation
People in Africa don’t have steady employment and
need to find other ways to generate income
Complication
For many people it is impossible to secure a loan in
order to grow or start a business
Solution
Provide small, affordable loans to these people and
train them on best governance principles so they
can create more profitable businesses

Conclusion
1818
FAQ
Q. How is Harvest Hope innovative? (How is Harvest Hope different from other
institutions?)
A. Harvest Hope gives loans to groups and works to build credit with its clients.
Other institutions generally implement only group loans but lack any sort of credit
system. What Harvest Hope does not do is try to fix the issue of microfinance
entirely, rather, we implement best practices in order to provide optimal service
specific for those in East Africa.

Conclusion
1919
FAQ
What are the biggest challenges facing Harvest Hope?
● Successfully screening candidates
● Securing more capital to provide more loans
● Moving into new markets

Conclusion
2020
FAQ
What are the biggest successes of Harvest Hope?
● Word of mouth marketing (finding potential candidates)
● Mitigating loan defaults through our unique combination of table-banking,
credit building, and circle loans

Conclusion
2121
FAQ
How are candidates found?
Candidates are found through word of mouth. The first clients were found via a
group that was already engaged in table-banking and ever since we have had no
problem finding candidates.

Conclusion
2222
FAQ
How are candidates screened?
We are still building out our screening process and our current method is as
follows:
1. Identify people who meet our candidate criteria
(women providing for their families)
2. Interview candidates to understand current business procedures
3. Discuss what a loan could be used for and how that would increase
revenues. Here we get into the financials of the business to determine if a loan
would actually be beneficial.

What does group lending look like?
23
HH
LOGO
23
Grouplending
$50 Loan
$150 Loan
$300 Loan
$500 Loan
Building credit
Seeking
$500 loan

2424
HH
LOGO
Grouplending
$50 Loan
$150 Loan
$300 Loan
$500 Loan
Building credit
Seeking
$500 loan

Full name
Phone
numbe
r
Busine
ss
Interest
rate
(annual)
Amount
extended
(ksh)
Amoun
t
repaid
Remaini
ng
balance
Term
(mont
hs)
Maturi
ty date
Monthly
paymen
t
Paymen
t due
date
Purpos
e of
loan
Future
vision
Missed
Paymen
ts
Richard
and Titus
25472
18965
72
Poultry
project 5% 50,000 4,375 45,625 12
Jun 1,
2019
4,375.0
0
1st of
month Feed 0
Harrison
25472
29022
31 Farm 7% 50,000 10,000 40,000 6
Dec 1,
2018
1st of
month
Feed
crusher 0
Moses
Kisembe
25472
65725
41
Poultry
project 7% 50,000 10,292 39,708 5
Dec 1,
2018
10,291.
67
Beg
Aug 1
Purcha
se
chicks 0
Refco
Beth
Wangechi
Apollos
25472
11075
60
Poultry
project 12% 20,000 4,200 16,000
1st of
month
Purcha
se
chicks 0
Mary
Aguda
25472
07250
70
M-Pes
a 12% 20,000 4,200 16,000
1st of
month
Cosme
tics line 0
Millicent
Suchi
25470
38088
64 12% 20,000 4,000 16,200
1st of
month 0
Ruth
Warui
25472
18425
13
Fruit
stand 12% 20,000 4,200 16,000
1st of
month 0
Carolyne 1st of

Aguda 725070 a 12% 20,000 4,200 16,000 month ics line 0
Millicent
Suchi
254703
808864 12% 20,000 4,000 16,200
1st of
month 0
Ruth
Warui
254721
842513
Fruit
stand 12% 20,000 4,200 16,000
1st of
month 0
Carolyne
Gitonga Farm 12% 20,000 3,534 16,666
1st of
month 0
Ann
Mungai
254711
617786
Shop/P
oultry 12% 20,000 4,200 16,000
1st of
month
More
product
s 0
Rahab
Kiarie
254720
742048
Rental
propert
y 12% 20,000 10,200 10,000
1st of
month
Buildin
g/leveli
ng 0
Benta
Maloba Shop 12% 20,000 5,200 15,000
1st of
month 0
Grace
Njenga
Butche
r 12% 20,000 200 20,000
1st of
month
Meat
counter 0
Jane
Ngatia
Margaret
Muhia
254723
568856
Restau
rant 12% 20,000 3,200 17,000
1st of
month 0
Elizabeth
Masibo
Deep
cleanin
g 12% 20,000 1,200 19,000
1st of
month 0
Christine
Orina
254726
160407 Shop 12% 20,000 3,700 16,500
1st of
month
Expand
shop 0

Specific Future Plans
1. Create/implement a more effective screening process
a. $2000 used for beta testing of new process with new borrowers
2. Reach out to 10 Kenyans already seeking loans
3. Expand efforts to Tanzania
a. Partner with Marafiki Africa
i. Meet with their network of small businesses
ii. Screen potential borrowers
iii. Create social capital
1. Leverage Marafiki’s relationship with them
2. Utilize our credit system to encourage payments
3. Potentially create small group-lending circles

Conclusion
2929
How does Harvest Hope prevent loan defaults?
The best way to avoid loan defaults is to screen candidates and mitigate the risk of losing large amounts
of money by giving small loans and building on those.

Muhammad Yunus on collateral
“The poor know that this credit is their only opportunity to break out of poverty.
They do not have any cushion whatsoever to fall back on. If they fall afoul of this
one loan, they will have lost their one and only chance to get out of the rut.”
- Banker to the Poor pg 57-58

Create a more effective
screening process
Beta testing with
contacts currently
seeking loans
Expand into Tanzania by
leveraging the network
of Marafiki Africa
Screen potential
borrowers from the
Marafiki network
Create social capital
by leveraging current
relationships
Utilize our innovative credit
system to mitigate risk

3232
Kenya
Partner with Marafiki Africa and leverage their
network of over 100 loan-eligible small businesses
Continue to help our businesses succeed
Expand to other groups of business owners
through our existing network
Tanzania
3232

What impact will $2,000 have?
3333
10 Loans Extended 50 People Positively Impacted

Harvest hope pitch deck

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