We intend to set up an exploratory study in which a sample of small entrepreneurs, borrowing for the first time at our partner MFI as individual borrowers, are offered the possibility to choose between a rigid, cheaper contract and a flexible, more expensive one. Our experiment is meant to get a first understanding on how the encouragement design works, and to bring preliminary evidence on the provision of a grace period. In this sense, we intend to achieve a proof of concept that could be used to design and implement the large-scale Randomized Controlled Trial. The latter will consist in randomizing our target population into two different treatments: one in which subjects are exogenously assigned a grace period, the other in which subjects are offered the choice between having or not a grace period. Subject borrowing in a rigid repayment schedule will be kept as control. The main objectives of the current exploratory study are therefore to carefully tailor the microfinance contracts (rigid versus flexible one), to assess the validity of the experimental design (whether there is enough heterogeneity among borrowers' types and subsequent choices), and to help making an accurate power calculation for the broad RCT.