Pajebal, Inc. is a U.S. 501(c)3 non-profit organization
Rural Community Finance. Global Interconnectedness. Investing in a Prosperous Future for Guatemala.
Fueling the Entrepreneurial Spirit in the Developing World
THE DETAILS ON HOW PAJEBAL SMALL BUSINESS LENDING WORKS:
Step 2: Pajebal's Working Capital Investment The cooperative's Investment Director and
Pajebal's Analysts conclusively determine which businesses meet both Pajebal's and the
cooperative's lending standards, and Pajebal then deposits our own working capital funds with
the cooperative, so that the cooperative can extend those funds to the approved businesses.
Pajebal's working capital funds were derived from a small amount of initial seed money we
acquired to get the project started.
Step 3: Making the Video For every business that Pajebal financially supports, Pajebal and
the cooperative together make a video: ( )
All videos are subtitled in English and
posted to this website.
Real videos are much larger.
See the loans!
Step 4: U.S. Lenders Lend! Prospective lenders in the United States, such as yourself, view the
various videos and decide which small business(es) you would like to support. Funds are lent
securely to Pajebal online in minutes using any major credit card, and are earmarked as a
long-term replacement (1 to 3 years) of the short-term working capital funds initially extended for
that specific small business.
Step 5: Your Funds are Sent to Guatemala Once a particular loan becomes fully financed
online (by either one larger loan from one U.S. lender, or many smaller loans from a number of
U.S. lenders), Pajebal wires the funds to our bank account in Guatemala. These funds then
replace Pajebal's initial working capital funds, so that those working capital funds can be
"unlocked" and move on to finance a new loan. Thus, until a loan on the website is fully funded
by U.S. lenders, those working capital funds cannot be released to finance a new loan.
Step 6: Loan is Paid Back, Money Becomes Available to You Five business days after the
end of term date in Guatemala for the particular loan(s) that your money was linked to, your
funds become available to you in the U.S. The cooperatives may pay the funds back to Pajebal
even if there is default on your particular small business loan, for a certain level of default is built
into the cooperatives' business models. Therefore, although you are extending your loan to be
linked specifically, your loan is paid back generally by the cooperatives. Risk is pooled. (However
if there is default on your specific loan, you can choose to "stick it out" with your specific
business borrower, and not be paid back until that particular business is up to date on its
payments. If there is some default, Pajebal will contact you about this option when the term is up).
Step 7: Withdraw, or Lend Again! At this point you can withdraw your funds by way of a U.S.
check, or you can lend again to another small business, and have the virtuous cycle of small
business development in the indigenous western highlands of Guatemala continue.
Note that when we use the term replace, we do not literally mean that we collect the physical currency
previously lent to the small business in order to replace it with new currency arriving from the U.S. via the
U.S. lenders. Rather, replace here is actually more of an accounting concept: the initial working capital
funds Pajebal lent to the small businesses via the cooperatives is only a short-term investment as
recorded in our books, and we must have new, longer term loan capital come in from the U.S., via people
such as yourself, in order for any new loans to be issued. Thus, once your money arrives in Guatemala,
on our books this money now becomes the longer-term capital that is linked to and supporting the small
business whose video you liked, and those initial working capital funds of Pajebal are now free to be lent
to another loan (step 2 on this page repeating itself). Thus, you can see how it would be unnecessary
(and quite silly) to actually physically exchange one set of newly arrived currency bills for the bills that we
initially issued to our small business borrowers.
Pajebal has explained this here in detail so there is absolutely no confusion as to how the operational
details of this project work. You are supporting the loan you choose online, even though we have put up
our own initial funds towards that small business beforehand in order to get the project rolling.
Note that in cetain instances Pajebal replenishes the cooperatives for solid loans that had already
recently been extended by them. There are two reasons for this: 1) Pajebal always wants to encourage
and financially support the absolute best investments of the cooperatives, even if the cooperatives had
issued certain loans with their own capital before Pajebal had the funds on hand, and; 2) To allow
approved loans to be lent in the most timely and efficient manner.
Also note that the cooperatives often contractually allow fund to be available for withdrawal by Pajebal on
a specific date before the term of the specific linked business borrower will come to a close. This is done
in order to shorten the term Pajebal provides to U.S. lenders on this website so that we don't exclude
ourselves from the market for lenders who require their funds to be more liquid. You as a lender, however,
can certainly choose to lend for a longer period than the minimum term as posted on this website beside
each loan video.
There are 3 ways to participate in Pajebal:
1) Lend to support
the small business
of your choice.
Choose the small
business video that most
appeals to you.
2) Lend to
Pajebal via Pajebal
Make a large positive
impact in rural
3) Donate to Pajebal.
Help us to continue to train
and operate in the field.
Participation methods are not exclusive; you may participate in one, two, or all three of
these intertwined projects of Pajebal.
How Pajebal Works