What do we mean by the term non-profit companies?
Palestine for Credit and Development - FATEN is classified as a non-profit company.
Non-profit companies are companies that provide services aimed primarily at improving the lives of citizens in society socially, professionally or financially, health-wise and many other aspects, without distributing financial returns to its shareholders as profits.
The question remains in the minds of many: How do non-profit companies maintain their sustainability?
Non-profit companies reinvest the profits and fees they receive as a result of their non-profit activities, such as the benefits they receive from the financing they provide to their beneficiaries, and allocate them to cover their operating costs, which include salaries, rental costs, office supplies among other costs, and invest the remaining profits in providing more financing, and developing various financial products that serve the vision and mission of the company, which it designed primarily to support the interests of its beneficiaries
Microfinance companies generally rely on two main sources of funding:
- Loans from local banks, and international funds and banks:
They obtain these loans to provide less fortunate people who are unable to borrow from banks due to their financial situation with various loans that meet their needs.
- The remaining profits from their non-profit activities which they use to provide and develop financial products to meet the needs of their clients.
It is worth noting that FATEN maintains a competitive interest rate in the field of microfinancing.
And don't forget to take the following steps when dealing with any financial institution to ensure that the final cost of your financing is suitable for you and your budget:
- Asking about the interest rate, commissions and surcharges required on the loan by any financial institution you deal with.
- Comparing costs among other financial institutions.
To learn more details about FATEN's work and the special terms in this business, visit the hashtag #إعرف_فاتن on social media.
