Victor

Cafeto Coffee Shop

San Francisco, CA

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2ndloan
Personal Story

My name is Victor, I am soon to become business owner with my partner Abel, in the opening of our coffee shop Cafeto in San Francisco. We are seeking financing options to help us in our last efforts to launch this lifelong dream in providing a better way of life and future for my family.

I was born in a very poor and numerous family in Cordoba, Mexico, and was forced to start working at the age of 9 to help provide for the family. I had to abandon school to emigrate from my home town to Mexico City, where I thought I would find better employment and more money for my family; but with my low level of education my options were limited.

In my continuous quest of a better life I moved to North Carolina in 2001, working in whatever type of job came in hand. I remember the first time I got paid $120.- dollars, it seemed like an immense fortune to me. I had never had so much money in my life. Luckily ten years ago someone introduced me to a Coffee Shop owner through my church; at this place I finally found a good place to be for many years. This job gave me the opportunity of a consistent and reliable income and the opportunity to learn, develop my knowledge of the business, and strengthen my love for coffee, which it will always hold a very special place in my heart since my home town Cordoba is a rich coffee growing area.

Through these past years, I was able with a lot of work and sacrifice, to raise the capital that I am investing today in this dream of owning my own coffee shop. With this Project I hope I will provide a better and more stable life for my family; and opportunities to many people like me.

To me working in a coffee shop is not just a job. I love the work and it is what I do best with the skills that God has laid on my hands.

Personal Update - Jan 11, 2013

Thanks to KIVA and many other friends that lend a helping hand when I needed it the most, I was able to open my business. This is a life's dream, I feel so empowered now to continue growing my business and providing a better life for my family.

Business Description

Neighborhood Coffee Shop, conveniently located. We provide coffee drinks and others, either hot or cold. Other products provided in addition to drinks include a large variety of pastries, hot or cold sandwiches, salads and other food products, to consume there or to go for a light breakfast, lunch or snack.

Business Update - Jan 11, 2013

Thanks to KIVA, I was able to complete the remodeling and upgrades of my first coffee shop. This remodel and upgrades were an absolute must in order to start operations back then. I approach different financial institutions but only KIVA trusted that I was going to be able to succeed in my business when other lenders would not since I was a start up.

I have not only been able to accomplish my dream of ownership, but with KIVA's support I am moving forward with my dreams of expansion.

What did you use your last loan for?

I invested in start up expenses for my first location.

What is the purpose of this loan?

1. Remodeling and upgrades for second location total initial estimate from contractor $18,000.-
2. My goal in sales for the second location is of at least $100,000.- in the first year.
3. It will allow me to make the investment on this second location without draining my working capital.
4. This last year, I have been working a lot to open and build a clientele in my first location. I have not been able to draw much from the business, most of the profit has been re-invested or working capital or retain earning for this expansion. With this second location I will be able to reach a level of profit that will allow me to actually draw a formal income for my own household expenses; and move forward to a better future for my family.

Victor's loan is endorsed by Mission Economic Development Agency. The information below explains why his trustee thinks Victor is a great candidate for a Kiva Zip loan.

Endorsement for this loan

How has the borrower's personal life and business changed since receiving a Kiva Zip loan?

Victor got his first KIVA loan in the process of starting up his new business. He needed more than $5,000.- but no lenders would support him being a start up. Since then; his dream of starting his own coffee shop has not only become a reality, but he created 4 jobs for other people in his community. His business sales keep consistently moving up with more solid steps towards his life's dreams of business ownership and a better life for his family.

Why are you recommending this borrower for another loan?

Now, we are endorsing him for his second loan, this time, to remodel his second location. When I first met him, in the process of starting his business, he expressed his determination to expand and open his second location within a year.
Not only he has done so, but now with better financial standing; and after a year of very hard work a second location means that his profit margin will definitely start producing more for his household. Definitely a step up in his financial milestones towards business success.

Original endorsement - Nov 29, 2011

What is your relationship with the Borrower?

Ongoing client of the Business Development Program. Victor is working with a counselor on a detailed business plan to open a Coffee Shop in San Francisco.

How did you meet the Borrower?

Victor enrolled in MEDA's Business Development Program. He attended the Business Development Program Workshops and is now receiving technical assistance in business planning and financial projections.

How long have you known the borrower?

4 months.

Why are you endorsing this Borrower?

He is a hardworking entrepreneur with 6 years experience in the coffee shop industry. Aside from this business that he is in the process of launching, he is presently a retail merchant at the Flea market, activity that he has performed for the past two years in which he worked ongoing without holidays or weekends to save for his dream business.

What are the challenges that you expect this borrower to face in repaying his / her loan?

This will be a new location for this type of business, so it might take a while for sales to build up.

Please describe the due diligence you have done to ensure that the business plans of this Borrower are sound:

We are working on a one on one basis analyzing and evaluating the financial projections and marketing strategy of his plan. At the same time we are advising him in aspects of his strategy to ensure that projected sales happen. Post the opening of his business we will continue to provide ongoing assistance in other aspects of risk management to ensure proper cash flow management and efficient operations.

Why do you think this Borrower has the "character" to repay this loan?

During the time that he has been working with MEDA he has shown determination and leadership in pursuing his goals. His vision goes beyong this first location to expanding within a year's term. Over the last few years, Victor has been slowly building up his savings and he has shown a willingness to invest his own money in this business.

Please describe how a Kiva Zip loan to this Borrower will have a significant and positive social impact:

Victor is a young entrepreneur who is seeking a better way of life for his family. As a father of two and with a new baby on its way he is determined to build assets to secure his children's future when he is gone.

What do you think will happen to the Borrower in the event of default? i.e. What are the risks to the Borrower's life?

Because the borrower has a secondary source of income that he will keep, he should be able to continue supporting his living expenses at the same time as repaying the loan. The worst case scenario would be to refinance and renegotiate the term.

Please describe why this Borrower is requesting a loan from Kiva, as opposed to a traditional loan?

Being a start up, loan options are limited in the present economy.

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PAYING BACK

A loan of $10,000 helps me to complete remodeling of my second coffee shop.

Disbursed Mar 28, 2013
Repayment Term:
36 monthly payments
Grace Period:
N/A
Listed:
Jan 11, 2013
Disbursed:
Mar 28, 2013
Paying Back:
Mar 28, 2013

About Cafeto Coffee Shop

Industry:
Restaurant / Caterers
Years in Operation:
1 year - 3 years
Follow:
Yelp
Badges:
Badge repayment gold small

Previous Loans

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Amount
$5,000
Paid Back
Nov 27, 2012

What are Borrower Badges?

Borrower Badges are a system designed to recognize and reward borrowers’ engagement with the Kiva Zip website.

There are two types of badges that are tiered like medals: Gold, Silver and Bronze.

  1. 'Repayment badges' are awarded for the on-time repayment of loans.
  2. 'Connectedness badges' are awarded for engagement with the Kiva Zip website.

This loan is endorsed by

Trustee Type:
Non-profit
Tier:
Third Tier trustee
Location:
San Francisco, CA
On Zip Since:
Nov 29, 2011
(45 months)
Loans Endorsed:
17
Total Value:
$72,000
Fundraising/Raised:
0
Paying on Time:
7
Paying Back Late:
0
Repaid in Full:
5
Defaulted:
2
Repayment Rate:
92%
Why are you endorsing Victor?

Now, we are endorsing him for his second loan, this time, to remodel his second location. When I first met him, in the process of starting his business, he expressed his determination to expand and open his second location within a year.
Not only he has done so, but now with better financial st...

What are Trustee Badges?

Trustee Badges are a system designed to recognize and reward trustees’ engagement with the Kiva Zip website.

There are two types of badges that are tiered like medals: Gold, Silver and Bronze.

  1. 'Repayment badges' are awarded for the on-time repayment of loans.
  2. 'Connectedness badges' are awarded for engagement with the Kiva Zip website.