Another point that would significantly increase my tendency to invest:

I whish there were more short-term credits, so I have a smaller feedback-cycle if this while thing works. I would rather invest in a 3 or 6 months project than a 1 or two year one to start with. Then - If I get my money back and get a feeling that this is working, I would dare to engage in longer term credits.

Cheers - Heiko

Depending on what kind of business (in terms of return of invest-time) is getting the credit: good idea!

Mike

Unfortunately, there are not so many short-term projects available, mostly because naturally it takes some time until a new business is running and people are able to pay back the credit.

Exactly. Generally be granted a grace period. Examples: www.mercycorps.org
Activities & Accomplishments of the Mercy Corps MF Network
•59% average annual growth in loan portfolio over the past three years, where the majority of institutions are located in countries with small populations (less than 15 million).
•Led an international investor group in the establishment of Bank Andara, a specialized wholesale microfinance bank in Indonesia; the demonstration effect will increase competition and spur lending among +50,000 MFIs throughout this country of 245 million.
•$69 million of savings mobilized; several Mercy Corps affiliated MFIs pursuing licenses to accept deposits.
•Training, technical assistance, ratings, research, networking provided through MICRA (Microfinance Innovation Center for Resources and Alternatives).