The Trust-based Partnership

Scaling up existing support mechanisms and being able to act locally requires an efficient partnership model that combines financial and non-financial support with intelligent workload and risk sharing. The TbPM has been developed to provide a comprehensive support mechanism for small businesses that are in transition from sustaining to growing their business.
It is based on four pillars of distributed services, which mutually reinforce each other:
- A bank, which disburses the loans. It takes over all tasks, which can due to regulations only be handled by banks. Its role is similar to that of a ‘credit factory’. This creates a highly standardized workflow permitting high numbers of loans to be handed out;
- A guarantee fund, which bundles all risk-sharing arrangements. It tries to have public, private and not-for profit investors and to provide risk guarantee up to 100% to the bank;
- Non-financial institutions, which are affiliated to organisations that are regionally anchored or trusted by the target group. They hold the relationship with the client and provide support until loan repayment,
- A Quality Risk and Network Manager who assures the quality of service of the partners and of the whole system.
The TbPM creates a self-sustainable system which generates revenues so that each partner can deliver services. The core design principle is cost-effectiveness which means that partners take over roles they can deliver more (cost-) efficient than others.