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Accelerate 2014 - Sheffield (www.acceleratesheffield.co.uk) Key points from a social lender’s perspective

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Page 1: Accelerate from Social Entrepreneurs

Accelerate for Social Entrepreneurs

25th March 2014

Paul Harrison

Page 2: Accelerate from Social Entrepreneurs

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

Page 3: Accelerate from Social Entrepreneurs

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

Page 4: Accelerate from Social Entrepreneurs

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

Page 5: Accelerate from Social Entrepreneurs

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?

Page 6: Accelerate from Social Entrepreneurs

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

Page 7: Accelerate from Social Entrepreneurs

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

Page 8: Accelerate from Social Entrepreneurs

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

Page 9: Accelerate from Social Entrepreneurs

a different bank for people who want a different world

Paul Harrison, Regional Manager

[email protected]

07917 646337