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Accelerate 2014 - Sheffield (www.acceleratesheffield.co.uk) Key points from a social lender’s perspective
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Accelerate for Social Entrepreneurs
25th March 2014
Paul Harrison
a different bank for people who want a different world
Charity Bank
A Different Bank
• Charity Bank;
– Established 2002
– A not for profit organisation;
– National coverage
– Work exclusively with Charities, Voluntary Organisations and Social Enterprises
– Savings
– Lending up to £1m, secured up to 25 years
a different bank for people who want a different world
Key points from a social lender’s
perspective
Viability
• break even or make surplus in reasonably short term
Sustainability
• Longevity – at least over the period of the loan
Social Impact
• Benefit created
a different bank for people who want a different world
Key factors viability/sustainability
There needs to be a plan
• assumptions should be reasonable, sensible and achievable
• investors need to understand them and buy in to them
Demand for product or service
• market research
Organisation properly resourced and contain appropriate skills
• the people must be able to deliver the plan
Ability to sell and market
Understanding and control of finances
• professional support
a different bank for people who want a different world
Key Factors Social Impact
What is the benefit
Who benefits
Scale of impact
Geography of Impact
Not for profit?
a different bank for people who want a different world
How do we assess proposal
History of the organisation – background information
Governance/management/the people
Historic Financial situation – profits/losses?
The project – does it make sense/do we understand it?
Repayment – will we get our money back?
Security – if it goes wrong is there a safety net?
Level of social impact
a different bank for people who want a different world
How does it work?
Business plan
Financial projections
Meeting with the management and trustees
Write report
Decision by credit committee
a different bank for people who want a different world
Trends in Social Investment
More of it
• Social Impact Bonds
• Big Society Capital
• Social Investment Business
More support
• Investment Contract Readiness Fund
• Big Potential
• Social Incubator North
More competitive
• Charity Bank/Triodos/Unity Trust
• Entry of funding advisers
More competitive
• Still tough for start ups early stage
• Emphasises the importance of being investment ready
a different bank for people who want a different world
Paul Harrison, Regional Manager
07917 646337