Loans Service

As we are an FSA regulated bank and a registered charity, our approach is different from traditional banks: we are primarily driven by social objectives, rather than profit generation.

We do this by:

•    Raising deposits and savings from individuals, charities and corporate organisations to create ‘social capital’;
•    Utilising these deposits as a stable, transparent and accessible loan fund; a
•    Ultimately providing tailored, loan solutions exclusively to Charities, Social Enterprises and other Third Sector organisations.

As we aren’t funded by the Government or by any other external agency, the Charity Bank is uniquely placed to provide accessible loans to the entire UK voluntary sector. We don’t have any restrictions based on geography or sector activity and we accept applications all year round.

Our Offering

In a world where the Third Sector is under pressure to adopt more sustainable business models, access to fair loan finance can be a real barrier to progress.

What We Can Do

The Charity Bank can provide loan funding from £50,000 up to circa £2 million (with larger deals arranged in partnership with other lenders) for a variety of needs such as:
•    Property purchase or refurbishments
•    Property development
•    Capital investments
•    Asset purchases
•    Short-term bridging loans including grant bridges
•    Working capital loans
•    Underwriting facilities for fund-raising programmes
•    A range of other requirements

If security is available to support the loan, then the Charity Bank will seek to incorporate it within the structure to keep costs down.

•    For secured loans, terms of up to 25 years are available
•    For loans when no security is available, it is more prudent to stay within a 5 year repayment schedule
What We Don’t Do

As a matter of principle, Charity Bank:
•    doesn’t lend to individuals or corporate customers.
•    never provides loans to organisations who aren’t robust enough to take on the liability and aren’t able to meet the repayment requirements.
•    never lends more money than is required by an applicant.
•    Normally does not ask for personal guarantees from trustee or management
•    never charges for early repayments (unless the loan is refinanced with another bank in the first 2 years).

It is important to note that loan funding isn’t appropriate for everyone. However, for those organisations who believe that a loan may form part of their financing solutions, we are happy to discuss your needs.

Call our loans team on 01732 774050