Lancashire Community FinanceElaine Rimmer

Lancashire Community Finance

• A ‘not for profit’ Community Development Finance Institution (CDFI) and registered charity.

• An Industrial and Provident Society • Registered with the Financial Services Authority (FSA). • Hold’s a consumer credit licence• Registered with the information commissioner under the Data Protection Act.• We take our obligations to our customers and investors very seriously and

adhere to a code of practice set out by the Community Development Finance Association

• LCF is assessed to be a strong CDFI after undergoing the CDFA Performance Framework for UK CDFIs Corporate Assessment, Change Matters 2 ( The organisation bench mark recommended by Small Change)

Lancashire Community Finance provides a range of ethical & affordable loans to

individuals and businesses• Personal Loans

Available to individuals from £400 up to £5,000, over terms of 6 months to 5 years, on a weekly or monthly repayment plan by direct debit

• Start-Up loansAvailable to budding entrepreneurs who have plans for a business or are already running a business under 12 months old. Loans from as little as £250 over terms of 1 to 5 years

• Home Improvement LoansAvailable to homeowners in Preston to carry out improvements and refurbishments such as central heating, kitchens, bathrooms and windows. Variable repayment terms

• Bespoke Home Improvement loans to property management companies to renovate residential blocks of flats • Business Loans

Available to existing or new businesses outside the Start Up Loan criteria for amounts up to £25,000. Variable repayment terms from 1-5 years

• Financial Education and Money ManagementAvailable to groups or one to one. Sessions are tailored to the needs and lifestyle of individuals, often in an informal setting to provide the knowledge, skills confidence and motivation to manage money well. This includes understanding financial products and having the confidence to use them.

Lancashire Community Finance

• Opened the first office in 2005 in Preston• Organic growth in Lancashire to 8 outlets, including Lancaster

Skelmersdale • Provided 8835 loans to the value of £6,015,664 • Saving residents in the region of £3.58M in interest they would have

paid to high cost lenders. The lending book stands at £1,226,500.

Home Improvement Loans

•171 Individual properties Improved•Amounts borrowed from £600 to £30000•Total lent £1,045,584• Interest charged from 3% to 9.9%•All loans based on an ability to repay (age, low income, benefits, property equity are not seen as barriers)

Preston HIL Pilot Phase For Owner Occupiers

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Home Improvement Loans 2005-2009Purpose of Housing Loan

Sandown Court Preston

Renovations included triple glazing, thermal cladding & biomass boiler system

LCF provided a £200,000 Loan

Scottish and Southern provided grant funding of £2.2M

Benefits

• Family living conditions improved• Better community environments• Sustainable loan fund, repayments are continually recycled • Loan repayment and terms tailored to match an individuals income &

expenditure• The majority of loans unsecured• Very low default rate• An ability to provide bespoke solutions

It’s necessary to take radical action to

ensure that families do not pay a high

price for being poor