Lesson 5 of 7

Acquiring and serving a borrower: acquisition, operating and collection costs

For most microlenders, operating cost is the largest cost. This lesson explains what it contains, and splits it along the life of a loan: the cost of acquiring a borrower, including the applicants who never borrow; the cost of serving a loan and the measures of productivity; and the cost of collecting from borrowers who fall behind. A worked example rebuilds the operating cost used in lesson 1 and shows why costs arrive before revenue.

Published 15 October 2026