Looking closely at the financial outcomes of Native CDFIs, it is clear that in addition to their outsized positive impact, they are a smart business choice. They have lower-than-average default rates, strong net asset ratios, and low historical write-off and delinquency rates.
On paper, the strength of relationships that Native CDFIs have in the Native communities they serve translates into a business model with an edge.
The approach is holistic. Native CDFIs supplement lasting relationships with lenders with extended services, such as financial coaching and training, in conjunction with lending activities.