By Unity Trust Bank at WCVA's Third Sector Funding Conference 2013.

1. Alternative Funding
for the Sector
Jon Field
Relationship Manager

2. A Funding Puzzle ??

3. A Bit About Me …
• Regional Manager in Wales for Unity Trust Bank; a socially
responsible Bank which specialises in the provision of banking
services to the charity, voluntary and not for profit sectors.
• Having joined Unity in July 2008, I previously spent 17 years
working for Barclays Commercial Banking in a variety of roles
including corporate business development and underwriting.
• My role with Unity involves full client relationship management in
addition to scouring new business opportunities for the bank.

4. Unity Trust Bank
• Established nearly 30 years ago
• We are the specialist bank for social enterprises,
charities and trade unions
• We are proud to deliver a range of banking solutions
and a quality of service that sets us apart from the
mainstream banks
• We look to achieve growth by being socially focused,
customer centred and commercially driven

5. WCVA & Unity Loan Scheme
• To assist organisations develop and/or refurbish their premises
from which to deliver enhanced services towards the common
good.
• Loans considered from £250k to £5m
• Terms available from 3 years to 30 years
• Typical margin: Typically Base** +2.25% (minimum 4% p.a.).
• Required security would normally be a First Legal Charge over
the property, with 1.5% Arrangement Fee
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6. Case Study:
Unity loan through the WCVA scheme,
helped Valley Kids develop a hub for
disadvantaged local children who want to
train in music and media.
“We already banked with Unity and know that they’re much easier to deal with than a
normal bank, but we were pleasantly surprised by the interest rates. This loan saves
us about £12,000 a year and will allow our funds to stretch even further. Unity works
for us and we would recommend them to other organisations.”
For more information on the loan scheme visit www.unity.co.uk/wcva
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7. Overdraft Facilities
• To assist normal revenue expenditure and/or cash flow requirements
• Overdrafts can be considered for amounts up to £1m secured, on a
max LTV of 70%. Normally a max of £50k for unsecured
• Terms are for 12 months and can be renewed subject to need and a
fresh application
• Typical margin over Bank Base Rate: +2.75% (minimum 4% p.a.) Unsecured. Typical margin over Bank Base Rate: +2.75% (minimum
4% p.a.) - Secured
• Arrangement Fee of 1.5% + Legal & Valuation Costs

8. Grant Bridging Facilities
• Provides short term cash flow support up to £50k pending receipt of
specific confirmed grant funding
• Maximum Term of 3 months, although in exceptional cases this may
be extended for a further 3 months, subject to completion of a fresh
application form
• Typical margin over Bank Base Rate: +3% (minimum 4% p.a.). NB –
Base Rate is currently 0.50%
• An Unsecured Facility, however Unity would typically want to provide
the main banking relationship
• Fees are typically 1.5% of the facility limit

9. Property Development Funding
• Property Development Funding is a funding package designed
to assist organisations with the redevelopment of existing
premises or the construction of new premises.
• The loan is paid out at different stages of construction, in line
with your needs, which often includes covering grant claims and
VAT rebates. This also ensures that costs to your organisation
are minimised.
• There is also an option for interest to be rolled up during the
construction phase where no interest and no loan repayments
are due until the property is completed.

10. Why Would You Borrow ?
• The need to compete in a new environment
• A need to bridge a delay in a grant not yet received
• To assist the start up of a new project or expansion
of existing services into new areas
• To assist seasonal income fluctuations of the
business

11. Information Required
• Mini CV's for senior and key staff and trustees /directors
• Business plan (if available)
• Latest Management accounts
• Budget
• Financial Forecasts incorporating Cashflow
• Development cashflow
• Audited Annual Accounts for Previous 3 Years
• Annual Report (if available)

12. Benefits of Loan Financing
• Can get a project off the ground and make things
happen now
• Can fill a gap in funding a project
• Can encourage long term planning, due to the long term
nature of loans
• Utilisation of assets that can generate additional revenue

13. Considerations
• Short or long term – cash flow/capital
• Secured or unsecured – buildings, contract/grants
• Be prepared – gather the information required
• Good internal finance systems will be needed to manage
loan financing
• For development projects professional advice will be needed

14. Questions?
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15. Contact Details:
Jon Field
Relationship Manager
PO Box 401
Cardiff
CF11 1LE
M: 07885 843889
E: jon.field@unity.co.uk