EA Financial Services is a microfinance institution in Koforidua, Ghana. In its seven months of operation, it has done well to establish a client base, but it now lacks sufficient capital to meet the growing demand for new loans. Although having a growing client base is a positive sign, the lack of capital is a significant burden - the company has had to begin turning down loan requests. The owner knows that potential clients will likely deal with one of his many competitors if he cannot provide financial services for them. He wonders if he should first explore obtaining additional operational capital or concentrate on improving current operations. Several alternatives to addressing these issues have presented themselves. What is his best course of action?

EA Financial Services was a microfinance institution in Koforidua, Ghana. In its seven months of operation, it had done well to establish a client base, before it lacked sufficient capital to meet the growing demand for new loans. Although having a growing client base is a positive sign, the lack of capital was a significant burden—the company had to begin turning down loan requests. The owner knew that potential clients would likely deal with one of his many competitors if he could not provide financial services for them. He wondered if he should first explore obtaining additional operational capital or concentrate on improving current operations. Several alternatives to addressing these issues had presented themselves. What was the best course of action?