Instrument library
Collective & community

Mutual Guarantee Networks

A group of SMEs cross-guarantee each other's loans, reducing single-lender risk. A formalised chama with institutional backing.

How it works
5–15 SMEs form a guarantee circle. Each posts a small reserve. The pool guarantees individual loans; default by any member draws first from reserves, then triggers shared liability.
Best for

Early-stage businesses that can't get individual credit but have peer accountability.

early stage
peer guarantee
shared liability

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