Boeun Thath

Thank you for your loan. It has been disbursed to Boeun Thath by MAXIMA Mikroheranhvatho Co., Ltd. in Cambodia. We are excited to watch this business grow. Over the next 12 - 18 months, MAXIMA Mikroheranhvatho Co., Ltd. will be collecting repayments from this entrepreneur and posting progress updates on the Kiva website.

Boeun's loan from Maxima, in the amount of $200, is being repaid on schedule as of March, 2008.

With her loan, Boeun purchased silk thread for her loom. She is able to produce four 12 meter pieces of fabric per month, which she sells to a local middleman. She said she was very grateful for the loan financed through Kiva, because without it, she would have to buy the silk materials on credit from a middleman. The middleman's price is 5 USD higher for every four pounds of material purchased. If Boeun had purchased her materials from a middleman, she would have to sell her finished goods to him as well. Because she now purchases her supplies on her own, she not only gets a cheaper price for thread, but she is able to sell her products to anyone she chooses. She estimates she earns $0.50 USD more per piece this way.

Boeun's husband said their household consumption had increased, and they now have more money for food, rice, water and charging batteries for electricity. The couple is able to generate more income for family spending and to send their son to school. The only difficulty they face is the price fluctuation for finished goods, as local middleman may alter their prices monthly.

For now, Boeun's husband has stopped weaving to do construction work, but he plans to start again in the near future. The two hope to send their son through high school or beyond, but say if this is not possible, their priority will be to find him a good job.

Boeun is pictured with her husband and purple silk thread purchased with the loan.

Today we visited Boeun to check in on her Kiva loan was progressing. We are happy to pass along the news that Boeun’s weaving business continues to thrive and that with her loan she has been able to increase her profit margins and subsequently raise the standard of living for her family.

Like many of her neighbors, Boeun works from home weaving silk that is purchased by Cambodian men and women to be tailored into traditional Khmer clothes. She prepares her loom and purchases material for each loom cycle- weaving dozens of kbuns, or standard size pieces, during each cycle. However, the cost of preparing the loom and purchasing all her weaving materials upfront is costly and Boeun lacks the capital to make this large investment at the beginning of each cycle. She needs a loan to make these purchases or she is forced to have to buy all of her materials on credit from a middleman and pay him back by selling her finished product to him at a much lower price than it is worth. With her loan, Boeun can shop around to buy the materials she wants, usually at a price several dollars cheaper per kaly (or 2 kilograms, the standard measurement for raw silk) and sell her silk material to a reseller at a higher price.

This seemingly slight difference makes a world of difference to Boeun. With the higher profit margins Boeun can bring home more money to her family. Boeun has personal health problems so with the increased income she is able to afford to purchase medicine for herself. She also works hard to pay for her son’s school fees, as she hopes he will be able to attend university in Phnom Penh next year.

Thank you for your support of Kiva, its local field partner MAXIMA, and especially Boeun. To hear more stories about MAXIMA and microfinance in Cambodia, please visit http://fellowsblog.kiva.org/category/kiva-microfinance-partner/maxima/