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A different bank for people who want a different world
Social Investment - Empty Homes
10 July 2013
A different bank for people who want a different world
Benefits of loan finance
• Enables a project to be delivered immediately• Can avoid potential increases in costs• Independence• Leverage Match Funding• Flexible purpose – unrestricted• Can be used to develop long term sustainable
income • Quick decision
A different bank for people who want a different world
Risks/Disadvantages of loan finance
• Another stakeholder to consider• Trustees generally risk averse• Security required• Loan needs to repaid – as such call on future
income.• Cost – interest, fees and charges• Requirement to provide regular management
info
A different bank for people who want a different world
Presenting Your Case • Business Plan
BackgroundPurposeAmountRepayment
• Historic Audited Accounts• Latest Management Accounts• Financial Projections/Budgets• Details of Snr Mgmt/Trustees/Directors• Governing Document
A different bank for people who want a different world
Assessing loan applications
• Nature of the project• Who benefits – social impact• Contribution• Past Financial Performance• Ability to service borrowing• Security – LTV%• Quality of the applicant/key staff/governance• Project Risks
A different bank for people who want a different world
Case Study 1
• Leeds Action To Create Homes (LATCH)• Est in 1989 - works with homeless people and
volunteers bringing disused and derelict properties back into use.
• £50k loan agreed to refurbish x2 properties.• Income from properties used to fund loan
repayments.
A different bank for people who want a different world
Case Study 2
• Foresight (North East Lincolnshire) Limited operates throughout North to meet the needs and requirements of disabled people, their families and carers.
• Charity Bank approved a £300k loan to help purchase and renovate an empty care home into 30 flats for young disabled people.
A different bank for people who want a different world
Bring It On?
• New source of capital in market where grants are increasingly difficult to obtain.
• But…it needs to be repaid.• Mission driven?• Consider the risks!
A different bank for people who want a different world
What is Charity Bank?
• A Social Bank that only invests in organisations that have social purpose.
• Our mission is to transform the future of charities and social businesses
A different bank for people who want a different world
Charity Bank – Key Facts
• Specialist Lender to Social Enterprise Mkt.• Loans £50k - £1m• Secured & Unsecured• Rates between 5% & 7.5%• Term up to 25 years• Generally no penalties for early repayment• Local representation• Loan book c£60m• Open for new business
A different bank for people who want a different world
Further Information
• www.charitybank.org• www.socialfinance.org• www.philanthropycapital.org• www.knowhownonprofit.org/funding/socia
l-investment-1
A different bank for people who want a different world
Further Information
Jeremy InceTelephone: 07787 575023
email: [email protected] Ince
[email protected] 575023
