Bicycle Asset Financing (BAF)
Small-scale farmers desperately need access to an asset such as a bicycle that increases their mobility and productivity. Unfortunately, microfinance products created for Africa’s poor do not necessarily meet such needs. They primarily offer cash loan products on strict repayment schedules which cannot meet the needs of rural farmers. Also such funds do not reach smallholders as many of whom remain unbanked and do not possess the assets needed for traditional financing collateral.
At CFF we designed a product pairing bicycle asset financing and a flexible repayment schedule to work for rural farmers. Instead of cash, CFF lends a bicycle the farmer needs for success. This asset based lending model reduces risk and reduces the need to assess credit worthiness. Our center bike mechanics will provide bike trainings to ensure that smallholders get the most out of their investment.
Instead of forcing weekly repayment schedules, our flexible schedules have just 2 deadlines for clients. First farmers meet a “prepayment” requirement which is 20% of their loan size. The 2nd repayment deadline is the final one which comes after harvest. After paying the first 20%, farmers are free to make repayment on their own schedules at any time throughout the season.
This type of repayment schedule works because it meets the needs of smallholder farmers, boost demand for bikes credit and increases their productivity. We expect overall repayment rate to be over 98%. CFF obtains used bicycles from partners in developed countries that are in good condition and can be used among the rural poor in Uganda.
Village Bike Rentals (VBR)
CFF rents strong manual bicycles and mountain styles. They are available for farmers, fishermen, traders, youths traveling to educational meetings, health centers, sports clubs and seasonal activities like market harvest days and occasional distant meetings. Bikes are same day pick up and return to store with in store hours but available for after hours at a fee. Rental rates are $1.4 within an arranged time slot.
Community Bike Competitions (CBC)
CBC program competitions are often organized from community to community within our beneficiaries’ jurisdiction areas. Competitions will encourage more Youths/women to take up cycling for transportation, fitness and a bike as source of income. CFF quarterly competitions are more on awareness ride (i.e. creating awareness about how bikes are environmentally friendly, encouraging motorists and pedestrians to share the road, among others). We shall be open to anyone with a bike.
CFF will award different categories of activities with different awards through an annual racing competition, bike tricks/balance and gymnastics and bike disassemble and assembling competitions.
Bike Repair and Maintenance (BRM)
This program mainly includes weekly bike maintenance and repair workshop led by our lead mechanic for project beneficiaries learning how to maintain and fix their bikes. CFFbicycle mechanic will also train district village mechanics that will run their own shops and support cyclists within their areas with bike repairs, maintenance parts and tools within their communities. Also students, youths and women interested in active participation are welcome to the center.
School Candidate Program (SCP)
Students in top classes or transitional classes for instance Primary Seven, Senior 4, Senior 6 normally should contact our bike centers so that a scheduled program can be arranged with them to access their schools in time during examinations period. This will help ease the long distance between schools and their homes so they can reach school on time. Bicycles can be provided at crucial exam periods through rental or even a higher purchase arrangement. These arrangements are often on a case to case basis.