What is a Wealth Creation Business Group?
Wealth Creation Business Group (WCBG) is a group of 7-15 business people, who are passionate about multi-generational wealth creation. They know each other and come from the same economic background. They save their money as a group on a monthly basis through buying shares called Gold Bars; and, have access to loans for their businesses from the group savings and at Wealthnet Finance.
The money mobilized through the purchase of Gold Bars, interest earned from loans issued to group members, and income generated from penalties for breaking the Group’s code of conduct are deposited at a Group’s commercial bank account. This fund is called Group Investment Fund (GIF) or Loan Fund (LF). It is from this fund that members borrow for their businesses. In short, Wealth Creation Business Groups are established in order to bring sustainable financial services to its members as they build their wealth/assets from one level to another.
The WCBG runs in cycles of 12, 18, 24, 36 and 48 months according to the preference of the group. At the end of a cycle, members share out their savings and interest in proportion to saving as represented by Gold Bars. It is a fact that if you get a loan from a bank, you do not have a share of the interest income the bank earns on the loan! With a Wealth Creation Business Group, members share interest income generated by loans obtained from the group.
In order to increase the Loan Fund, Wealthnet Finance automatically releases the equivalent of 20% of the total amount saved by members. This increases the amount of money in the Group Investment Fund for borrowing. In addition, the group has further opportunities of borrowing larger sums at low interest from Wealthnet Finance.
The WCBG is a business incubation hub where members share business ideas and opportunities. This accelerates the process of wealth building for individual members of the group. This is the financial freedom Malawi needs.
The WCBG is a platform where members select good ideas to create large scale co- operative businesses for the group. Wealthnet Finance supports the establishment of such co-operative businesses.
How does the WCBG work?
Business people who are interested in savings, loans and loan interest sharing form a group of 7-15 members.
Wealthnet Finance facilitates the development and training of the group;
The group forms a constitution before operations start. The constitution, among other things, defines how much each member is required to save every month, interest on loans obtained in the group, penalties for breaking group’s code of conduct and many more.
The group decides on its name and elects group leadership in the following positions: Chairperson, Vice-Chairperson, Secretary and Auditor to manage its activities.
Wealthnet Finance is a default Trustee and Treasurer of the group and keeps all group’s financial records and transactions using its core banking system. As the Trustee of the group, Wealthnet Finance is the legal face for the group and provides guidance in case the group faces leadership crisis etc.
Wealthnet Finance PLC facilitates the opening of the group’s bank account, arranges external financing and trainings, but also supports in establishing Group’s large scale co-operative business and many more. Note that Wealthnet Finance PLC is not a deposit taking institution hence all group’s deposits will be done at the group’s bank account.
The Chairperson, Auditor and Treasurer are the default signatories to the group’s bank account. The group may decide its account signatories in the constitution.
Members buy Gold Bars by making deposits to the Group’s bank account.
The group runs for cycles of 18, 24, 36 or 48 months according to the preference of members. The group is at liberty to start another cycle at the end of each cycle.
The group share out the fund at the end of the cycle according to how much each member saved.
What’s the interest rate for WCBG Loans?
The interest rate are determined by the group members when they are formulating their own constitution.
What are the advantages of WCBG?
Members have easy access to loans to grow their business from the group and from Wealthnet Finance PLC;
Members receive training and mentorship on how to grow their businesses;
Members share business opportunities;
Members embrace and cultivate a culture of savings;
Members share interests and all group’s other income at the end of the cycle;
Members’ financial records are properly managed and this will enable members to get much bigger loans from Wealthnet Finance;
Members funds are secured at a bank;
Members have ready social support from the group (the Group establishes a Social Fund to support members in good and bad times);
Members have a rare opportunity of interacting with great business mentors;
Members are owners of Group’s large scale Co-operative business.
What’s the control to ensure that my business idea does not get leaked or copied?
Members of the group sign a confidentiality and non-disclosure agreement. Any member of the group who leaks any of the group’s information is expelled from the Group and may face legal consequences.
The Group’s constitution does not allow copying of business ideas from fellow members without permission.
How to start your Wealth Creation Business Group?
Please find between 7 and 15 of your trusted friends and contact our team to help you start your Wealth Creation Business Group. Our officials can be contacted on the following official numbers 0998274204 or 0998274204 or 0884751535 or 0888505799 or 0883701680 or 0998274196 or 0991746598 or email firstname.lastname@example.org
You may also visit us at our offices as follows:
In Lilongwe, we are in Area 6 off M1 Road about 200m from Mbowe Filling Station.
In Blantyre, we are in Nyambadwe along the Blantyre-Chileka Duo Carriage Way opposite Waterboard water tank before the railway crossing as you are coming from Blantyre CBD.
Wealthnet Finance Public Limited Company strives to bring real wealth to Malawians and we are a trusted partner in Wealth Creation
Wealthnet Finance – a Trusted Partner in Wealth Creation!