Opportunity Finance Network

Opportunity Finance Network (OFN) is a network that helps provide investment opportunities to community development financial institutions (CDFI’s) benefiting “low-income, low wealth, and other disadvantaged communities across America” (Opportunity Finance Network, 2012).  Within this Network the CDFI’s deliver “responsible, affordable lending to help low-income, low wealth, and other disadvantaged people and communities join the economic mainstream” (Opportunity Finance Network, 2012).  

For their members OFN provides news, innovations, and results.  They also provide an overview of all loans and investments to CDFI’s since 1990.  For investors, they give a description that offers opportunities for investors interested in providing performance-based financing to CDFI’s nationally and methods to find more information on these opportunities (Opportunity Finance Network, 2012).  For CDFI’s, OFN provides financing products in order to help CDFI’s with their individual missions.

In order to become a member and obtain finances for these developments, potential CDFI’s are encouraged to familiarize themselves with the Membership Principles.  OFN rests on four different principles:  Mission and Impact, Finance-led Strategy, Commitment to Performance, and Support of OFN’s Mission.  If a CDFI meets the eligibility criteria, then the OFN assists them in meeting their PerformanceExpectations.  CDFI’s have to meet all of the membership principles but do not have to meet all of the performance expectations.

There are some really great things on this site that help provide a lot of information and keep members connected.  There is a program called Staying Connected where members share ideas with OFN and each other.  They use conference calls to keep in touch and schedule them frequently throughout the year.  OFN also provides a Small Business Finance Forum.  This is where more than 150 representatives from many CDFI’s around the United States and their partners, talk about issues that are important to small business finance providers (Opportunity Finance Network, 2012).  This also provides networking and the opportunity to build relationships.

OFN’s slogan is “finding financing opportunities that others miss” which points out a great advantage to using alternative financing.  A lot of these organizations can show you opportunities that you did not know existed.  If these opportunities go unnoticed, then they will be gone before you even knew they were there.  Another advantage of alternate financing is the opportunity to help others who might not be able to obtain financing on their own.  Some disadvantages are if you are not familiar with programs like this, you might sign up for something that is not beneficial for you or your company.  It is important, especially with finances, to make sure that you really research and know where you are getting your finances from so you and your business can be successful.

References

Opportunity Finance Network. (2012, January 1). Opportunity Finance Network - About. Retrieved August 11, 2012, from Opportunity FInance Network: http://opportunityfinance.net/about/