High street bank loans too difficult to access for most charities, says Charity Bank
only 31% ended up taking one 40% were offered a loan but chose not to take it up because it was too expensive or the conditions were too onerous. Research for Charity Bank has found that charities are finding it very difficult to access loans from high street banks. According to the survey of 258 UK charity workers conducted by Charity Technology Trust (CTT) on behalf of Charity Bank, 69% of charities were unsuccessful in accessing loans from high street banks.Of those charities which had approached high street banks for a loan: borrowing is too risky (38%) 40 total views, 2 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis belief that their charity was too small to do so (40%) Patrick Crawford is Chief Executive of Charity Bank, which lends solely to charities, community organisations and social enterprises. He commented: “The population of charities, social enterprises and other community organisations that are creditworthy but who cannot secure finance from traditional sources is large. As Government funding is cut, costs rise and donations shrink, the need for borrowing continues to increase.” Loans for charitiesMany charities use loans as part of their business development and to support income generation. The survey found that almost two-thirds (65%) of respondents agreed that loans can help charities further their mission. Advertisement too expensive (46% of all respondents, including those who did take loans out) Barriers to borrowingThe principle reasons that respondents gave for not seeking or accepting high street bank loans were: Howard Lake | 19 September 2013 | News High street bank loans too difficult to access for most charities, says Charity Bank AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis belief that banks don’t understand their business needs (27%) Image: rejected loan application by chrisdorney on Shutterstock.com Tagged with: Finance attitudes of the charity’s own trustees/senior management to borrowing (31%) it is too complicated (23%) He added: “Organisations such as Charity Bank must respond to this increasing need. We have made it our aim to help meet demand by growing our own lending capability.” 29% had their application turned down About Howard Lake Howard Lake is a digital fundraising entrepreneur. Publisher of UK Fundraising, the world’s first web resource for professional fundraisers, since 1994. Trainer and consultant in digital fundraising. Founder of Fundraising Camp and co-founder of GoodJobs.org.uk. Researching massive growth in giving.