Usually we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason, Lendahand only selects financially solid partners based on strict criteria.For most direct investments, there is no guarantee. However, currency risks are covered. Sometimes, and only for some direct investments in Africa, our partner Sida, part of the Swedish government, will guarantee a maximum of 50%.
Read here more about guarantees with Sida. Projects with Sida guarantees are indicated explicitly on the project page.