The SME Project has a markup on its cost of capital to cover its operational costs. The USAID did provide operating expenses to the project during its initial operation. After only two years of operation, the credit service generated enough income to cover operating costs including the interest charged on loan capital but excluding depreciation and provision for bad debt. In 1994, the credit service generated enough income to cover all operating and financial costs. The operating cost ratio of the project is ranked among the best in the world. 

The SME Project has a Provision and write-off policy based on the age of the portfolio in arrears. 

The portfolio at risk is always below 2 % of the outstanding portfolio.

For accounting purposes the project writes-off uncollected installments once they reach 12 months beyond their due date. However, this does not mean that collection procedures stop, the legal department continues to collect these funds. 

Transaction costs are small compared to the overall performance of the project. Loan processing time for new borrowers is one week from application. Repeat loans are approved and disbursed within 3 days.

The fiscal year end for the SME Project is December 31st. Audited financial statements are produced each year. Unaudited semi-annual financial statements are also produced for the project and for each branch.