Your SlideShare is downloading. ×
0
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Charity Bank - Have you Thought about Loans?
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Charity Bank - Have you Thought about Loans?

146

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
146
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Have you thought about Loans? Chapman Harrison Regional Manager – South West Charity Bank 27th November 2013 a different bank for people who want a different world
  • 2. Introduction       Charity Bank Investment Readiness Types of finance – logic path Examples A cautionary note Time for your questions a different bank for people who want a different world
  • 3. Charity Bank “I do not have very much money to invest or to give and Charity Bank enables me to contribute to good projects despite this difficulty.” Quote from a Charity Bank depositor a different bank for people who want a different world
  • 4. What is Charity Bank? • A Bank that has a social mission • Supporting social purpose organisations • Helping deliver social impact and change a different bank for people who want a different world
  • 5. How do we achieve our Mission? • We provide affordable loan finance to charitable / social purpose organisations that are usually unable to borrow elsewhere • Our work is funded by individuals and organisations that use their savings as a positive source for change • They get a financial return on their money and a social return from knowing what they have helped fund • Every pound deposited is used to provide loans to charities, community and voluntary groups and social enterprises • We work with a variety of partners to create alternative and creative funding solutions a different bank for people who want a different world
  • 6. Investment Readiness A state of preparedness to obtain / receive external investment. Track record, Structure, Governance, Management capability, Business Plan, Ability to produce timely financial reports and Forecasts. Ability to repay. Is taking external investment appropriate? If I am interested, where can I go to find out more? a different bank for people who want a different world
  • 7. What is investment readiness Commercial Finance Social Finance 1:2 Grant/Loan Fund 1:1 Grant/Loan Fund Fundraising/ Grants a different bank for people who want a different world
  • 8. How Can You Make Yourself Investment Ready? • Recruit Trustees with necessary skills • You need a continuing income stream to be able to repay a Loan • Employ / Take advice from professional firms: Accountants, Solicitors, Marketing. Some may work on a pro bono basis • Talk to other organisations doing similar things • Big Lottery seeking to launch an Investment Readiness Fund a different bank for people who want a different world
  • 9. Why use loan finance ? • • • • • • Purchase / Develop a building Refurbish a building Bridge receipt of a grant or other income Working capital facility Acquisition of equipment „Last brick‟ funding - One, or any mix of the above a different bank for people who want a different world
  • 10. What sort of things have Charity Bank funded? •Hostels for the Homeless with drug / alcohol issues •Refurbishment of Almshouses •Building new Village Halls •Buying a building to use as a Community Centre •Development of Affordable Homes •Respite Care Homes •Supported Living Homes •Pre-School / Nursery facilities •New facilities for Sports Clubs •Office space with additional space available for letting to give income stream a different bank for people who want a different world
  • 11. Loan Finance – the benefits • Enables a project to be delivered NOW providing services to beneficiaries AND generating income • Can avoid potential increase in costs (building cost inflation) • Unable to obtain grant funding • Lending against pledges/retrospective grants a different bank for people who want a different world
  • 12. Loan Finance – the small print • Minimum £50,000, Maximum £1M + • Loan term up to 25 years • Secured and Unsecured (max 5 years) • Secured on property or other assets • Loan to value (normally 70% max) • Borrowing rate – typically 6.50% Secured / 7.50% Unsecured • Fees: 1.00% Arrangement Fee, plus you pay own Legals / Valuation Costs etc. • Covenants: What we both expect to see a different bank for people who want a different world
  • 13. Points to be aware of Other lenders may demand Trustee guarantees (Charity Bank does not) Pre-drawdown conditions (e.g. Planning Permissions) On-going financial covenants (e,g. Debt Service Cover) On-going information requirements (Quarterly Accounts / copy bank statements) Possible Breakage costs / early repayment penalties on your existing Loan Events of default and consequences of default a different bank for people who want a different world
  • 14. Charity Bank Borrower: Half Moon Young People‟s Theatre a different bank for people who want a different world A different bank for people who want a
  • 15. Thank you. For further information please contact: Chapman Harrison 07795 107173 charrison@charitybank.org a different bank for people who want a different world

×