StartUp SACCOS you'll love
Fast capital funding solutions for the Tanzania startups.
Banks have abandoned startups altogether
Wealth is in the hands of the few and access to financial opportunity is unequally distributed. We don’t think that’s fair. At Starter fund, we fight for financial fairness and empower all members build their better future.
There's a better way to fund your business
Accessing business funding shouldn’t be complicated or time-consuming, so SSCF developed a simple way for small startups to secure up to TZS 200M. Whether it’s to buy inventory or a complete renovation, SSCF is your trusted financial partner at every step.
So where do profits go? Earnings are returned to members through a broad range of convenient services, attractive rates, lower fees and free financial education resources.
How It Works
We're proudly 100% member-owned.
We work with our members, not just to meet their financial service needs, but to enable dreams, aspirations and fulfilling lives.
Some ways our members use SSCF
We’re not a big bank or a small bank – we’re a better way to bank! SSCF is owned by our members and dedicated to their financial success. Instead of returning earnings to corporate stockholders (like big banks do), we return them to our members in the form of better rates, lower fees, and more free services. Learn about the SSCF difference
We are dedicated to building trusted relationships with our members. We’re personally invested in helping our members achieve their financial dreams. Whether you are saving for your first car, your first home, or your retirement, SSCF is here to help you reach your goals.
SSCF supports and fosters a safe, inclusive, and caring environment for all members.
We are proud to celebrate the differences between and within every member
And for both employees and members, Advantis has a zero-tolerance policy of discrimination, racism, and harassment.
How SSCF can help you hit your capital goals
SSCF is a not-for-profit cooperative of people who come together for a common purpose. Some to save, some to borrow, and some to support startups by investing with low interest.
Grow Your Business With
MSME Capital Funding
We’ve built an app to help make managing your money stress-free.
Keep on top of your capital fund, savings, know your credit score and more.
FYI We Are A Fully Regulated SACCO.
As a SACCO, we’re organized differently than other financials. SSCF is a not-for-profit financial cooperative owned by our members. That means earnings are returned to members in the form of better rates and lower fees. SSCF is also governed by a volunteer board of directors who are elected by our members. Each member has one vote in the election for our board regardless of how many shares and how much money that individual has on deposit.
We’re not a big bank or a small bank – we’re a better way to bank!
We offer a comprehensive range of personal and business financial services. But most importantly, we take the time to listen to you and help you grow further.
We encourage all of our members to take advantage of our Financial Resource Advisors Investment Representatives. Whether you want to plan for retirement, pay for your child’s education, or purchase your first home, They can help you set a path to meet your most pressing financial goal. They can meet you at your office, free of charge, with no obligation.
SSCF has the tools, resources, and advice to cultivate your dreams.
All money deposited in SSCF is held with bank partners. Bank holds your money, SSCF gives your money life.
Get the funds you need – sent directly to your bank account – within 1 business day of approval, so life won’t slow you down.
SSCF is a Savings and Credit Co-operative (SACCO) whose main objective is to mobilize savings from members and in return provide capital funding facilities.
- Member-owned, empowering members to contribute to the organization’s capital — and to reap the benefits.
- Member-governed, awarding each member with one vote to elect our governing Board of Directors, who set policy and direction for the organization.
- Autonomous and independent, practicing our core values of integrity, people, service, innovation, education, and celebration.
- Education-driven, providing financial education and training to help members and non-members succeed and to contribute positively to the local economy.
- Community-focused, encouraging our employees and members to give back as volunteers, donors, and caring citizens.
- Cooperative-minded, supporting laws and financial services that benefit not-for-profit cooperatives and our members.
It depends on what you are looking for in a financial institution, the level of attention that you want to receive as a customer and the rapidness that you need access to your funds when deposits are made into your bank account.
It is a myth that an individual has greater chances of getting approved or that the loan will be greater in amount if the individual applies through SACCOS. It is also a myth that the verification systems and security systems of SACCOS are weak. In fact, some SACCOS security systems have been found to be stronger than those from a Bank.
But if you want more personalized customer service and more attention to detail then a SSCF is the place to go. Also, SSCF account is not closed unless you as a member makes the decision. On the other hand, banks do make the decision to close a customer’s account on their own. Yes, some SACCOS have been found guilty of questionable behaviors. However, banks have been found guilty of serious crimes including fraud.
What you need to focus on, in our opinion, is ownership.
At a SSCF, your money is owned by you. As a not-for-profit entity run by a Board of volunteers, all income is returned to the members or invested back into the building in the form of infrastructure or other investments.
This, generally, allows SSCF to offer lower interest rates, higher returns on deposits, and demand a lower (read: cheaper) fee schedule because nothing is being siphoned off the top to pay executives and ownership.
We would naturally say that a SSCF is better. It’s a member-owned financial cooperative. The board of directors are members just like you. And generally you get better interest rates and lower loan rates. Any profit the SSCF makes is channeled right back into the SSCF for the benefit of the members.
Put simply, Banks are for profit institutions owned by people who invested in it and who want a good return on their investment, while SSCF is owned by members (YOU) and only need to make enough profit to operate and pay their staff, and any extra goes back to the depositors as interest.
So usually SSCF offer better interest on savings, have more “personable services” and have lower interest rates.
Depending on the size, SSCF offer the same type of services you would find at a bank. But at a bank, you are a customer.
At SSCF, you are a member and equal owner with every other member. You have an equal vote.
Here are some TAKEAWAYS:
- Is not-for-profit institution.
- As members, each person that deposits money has a share of ownership
- SSCF only serves its members as per its constitution.
- Members elect a volunteer Board of Directors to represent our interests
- Is a member service-driven
- Return profits to members in the form of lower loan rates, higher savings rates, and free or low cost services.
- Federally insured by the TCDC
- Exempt from federal income taxes.
- Are profit-oriented institutions
- Can serve anyone in the general public
- Have customers with no ownership to their organization (unless they also own shares separately)
- Have a paid Board of Directors who represent the Shareholders (owners); customers do not have voting privileges’
- Controlled by shareholders and paid officials
- Return profits to Shareholders
- Federally insured by the Central Bank (BoT)
The annual percentage yield (APY) is the real rate of return earned on an investment, taking into account the effect of compounding interest. Unlike simple interest, compounding interest is calculated periodically and the amount is immediately added to the balance. With each period going forward, the account balance gets a little bigger, so the interest paid on the balance gets bigger as well.
- APY is the actual rate of return that will be earned in one year if the interest is compounded.
- Compound interest is added periodically to the total invested, increasing the balance. That means each interest payment will be larger, based on the higher balance.
- The more often interest is compounded, the higher the rate will be.
Formula and Calculation of APY
APY standardizes the rate of return. It does this by stating the real percentage of growth that will be earned in compound interest assuming that the money is deposited for one year. The formula for calculating APY is:
- r = period rate
- n = number of compounding periods
What Annual APY Can Tell You
Any investment is ultimately judged by its rate of return, whether it’s a certificate of deposit (CD), a share of stock, or a government bond. The rate of return is simply the percentage of growth in an investment over a specific period of time, usually one year. But rates of return can be difficult to compare across different investments if they have different compounding periods. One may compound daily, while another compounds quarterly or biannually.
Comparing rates of return by simply stating the percentage value of each over one year gives an inaccurate result, as it ignores the effects of compounding interest. It is critical to know how often that compounding occurs, since the more often a deposit compounds, the faster the investment grows. This is due to the fact that every time it compounds the interest earned over that period is added to the principal balance and future interest payments are calculated on that larger principal amount.
Comparing the APY on Two Investments
At first glance, the yields appear equal because 12 months multiplied by 0.5% equals 6%. However, when the effects of compounding are included by calculating the APY, the money market investment actually yields (1 + .005)^12 – 1 = 0.06168 = 6.17%.
Comparing two investments by their simple interest rates doesn’t work as it ignores the effects of compounding interest and how often that compounding occurs.
APY vs. APR
APY is similar to the annual percentage rate (APR) used for loans. The APR reflects the effective percentage that the borrower will pay over a year in interest and fees for the loan. APY and APR are both standardized measures of interest rates expressed as an annualized percentage rate.
However, APY takes into account compound interest while APR does not. Furthermore, the equation for APY does not incorporate account fees, only compounding periods. That’s an important consideration for an investor, who must consider any fees that will be subtracted from an investment’s overall return.
APR vs. APY: What’s the Difference?
Example of APY
If you deposited $100 for one year at 5% interest and your deposit was compounded quarterly, at the end of the year you would have $105.09. If you had been paid simple interest, you would have had $105.
The APY would be (1 + .05/4) * 4 – 1 = .05095 = 5.095%.
It pays 5% a year interest compounded quarterly, and that adds up to 5.095%. That’s not too dramatic.
However, if you left that $100 for four years and it was being compounded quarterly then the amount your initial deposit would have grown to $121.99.
Without compounding it would have been $120.
X = D(1 + r/n)n*y
= $100(1 + .05/4)4*4
- X = Final amount
- D = Initial Deposit
- r = period rate
- n = number of compounding periods per year
- y = number of years
How Is APY Calculated?
APY standardizes the rate of return. It does this by stating the real percentage of growth that will be earned in compound interest assuming that the money is deposited for one year. The formula for calculating APY is: (1+r/n)n – 1, where r = period rate and n = number of compounding periods.
How Can APY Assist an Investor?
Any investment is ultimately judged by its rate of return, whether it’s a certificate of deposit, a share of stock, or a government bond. APY allows an investor to compare different returns for different investments on an apples-to-apples basis, allowing them to make a more informed decision.
What Is the Difference Between APY and APR?
APY calculates that rate earned in one year if the interest is compounded and is a more accurate representation of the actual rate of return. APR includes any fees or additional costs associated with the transaction, but it does not take into account the compounding of interest within a specific year. Rather, it is a simple interest rate.
Don’t convince anyone to join us, unless it is their decisions.
Just keep sharing information with your friends, and remember (4SW) some will some wont.. so what? Someone is waiting