Latin American crafts store builds inventory and business credit with a loan from ACCION USA

You don't have to leave the country to bring home colorful, handmade crafts from Latin America - you can just visit Melrose, where Artesanía offers everything from Aztec calendars to Talavera ceramics.

Treasures from south of the border
Artesanía's colorful storefront is stocked with beautiful jewelry, painted dishes, ornaments, note cards and other artisan treasures. Each item comes from a specific town or region in Mexico or South America, and most derive from cultural traditions hundreds-even thousands-of years old.

Owners Leonardo Clavijo and Leticia Mantilla believe it's important to explain these origins to their patrons. "We tell customers the way they are made and give them lots of information about the products and the parts of the world where they are from," Leticia says.

Too new to qualify for a loan
When Leonardo and Leticia started the business in mid-2005, they knew that the first holiday season would be critical.  They didn't have the funding they needed to fully stock the store, so they applied to three different banks for a loan. 

They were rejected each time: their business was too new and they didn't have enough collateral. "At one point we thought, unless you are well-off financially, this won't happen," Leonardo says. "How, when you don't have anything, are you supposed to start?"

Finally, the Small Business Administration referred the couple to ACCION.  They applied and were approved for a small loan-enough to stock the store for the holiday shopping season. There was even a little money left over for remodeling and building their website, www.artesaniahome.com. 

Timely loan gives store a good start
Artesanía's first holiday season was a big success: sales exceeded expectations in just six weeks. "If it wasn't for my parents and ACCION USA, I would not be here today," Leonardo says.

ACCION USA also helped the couple lay the groundwork for "graduating" to bank funding - by giving them a chance to prove themselves a good credit risk, and by teaching them what banks expect from small business borrowers. "ACCION USA has given us the opportunity to establish business credit and also provided guidance on applying for loans in the future," Leonardo says.

Donate Now

Everyday entrepreneurs like Leonardo and Leticia struggle to obtain credit from tradditional sources. Your donation to ACCION USA will give small business owners, just like Leonardo and Leticia, a chance to get their businesses off the ground.