Charity Bank Jaishree Mistry Lending Manager, London & South

What is Charity Bank? A Bank that is also a Charity Our mission is to transform the future of charities and social businesses

How we achieve our mission We provide affordable loan finance to charitable organisations that might not be able to borrow elsewhere Our work is funded by individuals and organisations that use their savings as a positive source for change. Every pound deposited is used to provide loans to charities, social enterprises and voluntary organisations.

Charity Bank’s impact to date £80+ million the amount of money that has been placed with or invested in Charity Bank. £165,000,000+ the amount committed to charities, churches, and social enterprises to date. 3,000,000 the number of people in the UK that have been reached by organizations that Charity Bank has supported £160 million of additional funding has been unlocked as a result of our funding.

Charity Bank loan finance £50,000 to £1,000,000 6 months to 25 years Secured or unsecured Secured on property or other assets: maximum 70% loan to value Rate typically 6.5% secured and 7.5% unsecured Arrangement fee 1% No early repayment penalties unless…

In need of finance? Buying a building Covering payments in arrears Buying equipment Funding staff posts Building up reserves Starting new projects Plugging a funding gap Refurbishing premises

Benefits of loan finance Enables a project to be delivered NOW Can avoid potential increases in costs Lending against pledges/retrospective grants Independence

Assessing loan applications Nature of the projectNature of the project Who benefitsWho benefits Ability to service borrowingAbility to service borrowing Quality of the applicant/key staff/governanceQuality of the applicant/key staff/governance Credit CommitteeCredit Committee

Key information Background information on the Trustees and Management team Business Plan – 3 years forward Risk Analysis, including contingency planning Past 3 years annual accounts & annual reports Financial projections Bank statements

Financial analysis Mix of income streams, and, robustness Reliance on grants (%) Reliance on service contracts (%) Sensitivities Regular surpluses generated? Fixed v Variable costs Management/Staff costs Reserves - (Policy?...Restricted/Unrestricted funds (%)) Fixed Assets – easily realisable? Who are the creditors? How long does the organisation take to pay its creditors? Who are its debtors? How long does the organisation take to pay its debts?

Financial history and financial forecasting Risk analysis and mitigation Confidence in your people Ability to repay/ Income generation plans

Points to be aware of Pre-drawdown conditions On-going Trustee guarantees Financial covenants On-going information requirements Events of default Early repayment penalties

Further information Jaishree Mistry Lending Manager, London & South