Not many people are aware of the growing numbers of Community Development Finance Organisations that can help those customers that do not meet the guidelines or policy constraints that the banks must operate within. Organisations like Fredericks Foundation, which has lending hubs covering individual counties, will try and help small businesses struggling to obtain a loan.
The Local Small Business Loan Provider – Here To Help When Banks Say No
It is a truth universally acknowledged that a small business in possession of a strategy and a business plan will at some time need a loan. As SMEs provide 65% of jobs, it is of little wonder that the banks are under pressure to lend. However, increasing lending in uncertain times is not easy for banks when increased regulation and stakeholder demands are added to the mix.
Perhaps more needs to be done to increase awareness that other lenders are available when the bank says no?
Not many people are aware of the growing numbers of Community Development Finance Organisations that can help those customers that do not meet the guidelines or policy constraints that the banks must operate within. Organisations like Fredericks Foundation, which has lending hubs covering individual counties will try and help small businesses struggling to obtain a loan. Fredericks Foundation understands that clients need a viable alternative to bank finance and focus more on the viability of the business proposition rather than the credit score of the entrepreneur.
This is a labour intensive model to operate and therefore Fredericks Foundation is a registered charity that constantly needs to attract funds to cover expenses of client managers as well as funds to lend. Cambridgeshire Community Foundation works hard to fundraise but more donations are always needed. Fredericks Foundation keeps costs to a minimum and utilises an army of volunteers across the local community to undertake key roles such as mentoring, lending panel members and marketing as well as to provide meeting rooms when needed.
Top 50 UK Law Firm, Mills & Reeve have recently offered assistance to Fredericks Foundation with several members of their team offering to mentor our clients and act as lending panel members.
William Roles, Mills & Reeve Partner said: "We have a wealth of experience of working with businesses and individuals which means we're well placed to help Fredericks Foundation through mentoring and sitting on lending panels. By doing this, we can further help grow the local economy and also give our people an opportunity to develop skills, experience and networks beyond the usual law firm environment. As a result the feedback from the staff who work with Fredericks Foundation is overwhelmingly positive."
Local Client Manager for Fredericks Foundation, Cambridgeshire, Carol McCunn, continues to increase links across the community and works closely with all the high street banks as well as a number of professionals, housing associations, the local authority and the local enterprise partnership as well as local business connectors and business trainers. Her aim is to be the natural choice of small lending provider when the bank cannot help.
She said: ’”We want to help as many businesses as possible so limit start up loans up to a maximum of £10,000, although our average loan size is nearer £3,000”.
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