1.WHO IS VISIONFUND, AND WHAT DOES IT DO?
VisionFund is a leading licensed microfinance institution in Cambodia, working in synergistic partnership with key development players to provide financial services and other services to clients for economic development and poverty alleviation. It is part of the VisionFund International global network operations in 30 countries under the umbrella of World Vision International. VisionFund Cambodia has been recognized as one of the best among its fellow microfinance institutions worldwide.
2. HOW DID VISIONFUND EVOLVE?
Before 2000, World Vision Cambodia provided loans through its Area Development Program staff. In 2000, World Vision Cambodia created a credit program called Micro Enterprise Development (MED). The program grew gradually until 2003 when it was required to register with the Ministry of Commerce and the National Bank of Cambodia and VisionFund was licensed by the National Bank of Cambodia in March 2004. Since 2005, VisionFund has sustained itself, and the ownership has been transferred from World Vision Cambodia to VisionFund International.
3. WHY DID VISIONFUND NEED TO BECOME A MICROFINANCE INSTITUTION?
Before 2000, many credit programs were implemented by non-profit organizations. When intending to strengthen the microfinance sector to protect the benefit of stakeholders including clients, investors, microfinance institutions, the royal government and National Bank of Cambodia in 2003 set up regulations requiring large scale credit project to be registered as companies. That year, as the Micro Enterprise Development (MED) grew significantly, serving the number of client as determined by National Bank of Cambodia, MED was required to register as a company which was afterwards called VisionFund.
VisionFund is part of VisionFund International, which operates in 35 countries. VisionFund International’s goal is to make all institutions under its management sustainable through its operations as a separate company.
4. WHAT IS THE RELATION BETWEEN VISIONFUND AND WORLD VISION CAMBODIA?

VisionFund operates in and around areas targeted by World Vision Cambodia, which is a big international NGO in the country, with its prioritized strategic programs focusing on Education, Health and nutrition, HIV / AIDS, Food Security and Water Sanitation, Peace and Justice. World Vision, as global focus, has developed a Micro-Enterprise Development Program Strategy which consists of five fingers namely 1) Access to financial services; 2) Access to market; 3) Access to know-how; 4) Access to information; and 5) Access to technology. VisionFund responds to one of the fingers access to financial service. World Vision Cambodia provides training on business, professional and necessary skills to equip community with entrepreneurial skills and VisionFund provides financial services for those who are able to start or expand their businesses to increase their income.

5. WHAT IS VISIONFUND SOCIAL MISSION? AND HOW DOES IT KNOW IF ITS FINANCIAL SERVICES POSITIVELY IMPACTS CLIENTS, COMMUNITIES, AND THE WHOLE SOCIETY?
We improve the lives of children. We empower poor women and their families with small loans and other financial services.We unlock the potential for communities to thrive. VisionFund is committed to work with the poor and vulnerable groups including families affected by HIV/AIDS. While many institutions consider financial sustainability as their success factor, VisionFund provides financial services to HIV/AIDS families and relatives who are responsible for raising orphans whose parents died of AIDS. VisionFund has clear-cut plans to reduce poverty by 20%, which means at least 20% of its clients move from a high poverty level to a more manageable level of poverty  after 3 loan  cycles with VisionFund. The Internal Audit and Evaluation Department conducts an annual evaluation to ascertain its impact on VisionFund clients.
6. HOW DOES VISIONFUND CHARGE INTEREST RATES?

VisionFund charges interest on its loan products based on the following factors:

External factors

- Financial costs – cost on borrowed fund

- Inflation

- Movement of foreign currencies

- Tax and other legal services

- Cost of capital loss (Natural Disaster)

- Payment of interest to clients who deposit with VisionFund

Internal factors:

- Operations in rural areas

- Limited scope of capital

- Long distance of travelling from office to clients’ houses

- Limited infrastructure

- High risks (Most loans are offered without collateral.)

7. WHO ARE VISIONFUND’S TARGET CLIENTS?
Through its mission, VisionFund is a microfinance institution committed to help the poor, especially those who are living in remote areas with ability, knowledge and skills in doing businesses, but are lacking capital. In addition, VisionFund demonstrates greater social mission by offering financial services to vulnerable / excluded groups like families infected or affected by HIV/ AIDS and relatives who are responsible for raising orphans whose parents died of AIDS, the disabled and widows—those who have ability, knowledge and skills in doing businesses, but are lacking capital.
8. WHERE DOES VISIONFUND OPERATE?

VisionFund is currently operating in 25 provinces and city including Phnom Penh, Oddar Meanchey, Banteay Meanchey, Siem Reap, Battambong, Pailin, Preah Vihear, Pursat Kampong Thom, Steung Treng, Ratanakiri, Mondulkiri, Kratie, Kampong Chhnang, Kampong Cham, Kampong Speu, Prey Veng, Kandal, Svay Rieng, Takeo, Kampot, Kep, Preah Sihanouk, Koh Kong and Suong.

9. WHAT MAKES CLIENTS AND INVESTORS TRUST VISIONFUND?
Global Network
VisionFund is part of the VisionFund International global network operating in 35 countries. This network relationship provides VisionFund with a better image and back up in public trust.
VisionFund’s Strengths
Management
: VisionFund has board of directors with diversified expertises. Management is certain and serious to direct VisionFund toward attaining its mission and vision.
Human Resources: VisionFund recognizes the strength of an organization coming from its people. VisionFund values its staff as the most important asset to contribute to social achievements and support its strength and growth.
Financial Sustainability: VisionFund has sufficient resources to fulfill clients’ practical needs.
System: VisionFund’s clearly organized internal control system that establishes principles and procedures to control all departments and positions. Some committees have been set up including Social Performance Committee, Asset & Liability, and Risk Management Committee.