a very social bank “As a simple objective ... profits in excess of those required for reasonable

return on shareholders ... capital and for prudent reserves would be devoted to purposes relating to the higher interests of the community”

Unity Trust Bank founding quote 1984

Date: 2nd March2013

Prepared by: Lee Jagger

Prepared for: Empty Homes Community Grants Programme

Finance Options

Type Sources

Short Term Loan (<1 year) Commercial Sources e.g. Banks Medium Term Loan (1-5 years) CDFI’s Long Term Loans (5+ years) Grant Giving Bodies Grants Specialist VCO Funds Gifts and Donations Individual Supporters Equity

Business Plans

Business plan will include:

•Description of idea

•Details of track record

•Market information: who are your customers, how many do you have, how much will they pay- EVIDENCE?

•A plan of how to reach the target client – partners/tactics etc

•Financial projections

•A clear rationale for the projections that relates to both current financial performance and the market analysis

Less can be more!!!

Questions we ask

Customer- Who are we lending to (Legal status/board members/main staff)?

Ability- Track record (experience/skills)?

Means- Available security?

Purpose- What will funds be spent on?

Amount- How much required, is it enough and other sources?

Repayments- Is the loan affordable?

Interest- Can vary with perceived risk?

(CDFI) - Same as the banks- different decision!

How we decide

Ultimately we ask

Investment ready (can they do it, do I believe now), what are risks?

If not how can I mitigate risks?

Would I invest my own money?

Top tips

Keep it concise.

Assume nothing- expect questions.

Own the proposal- know your stuff.

Keep in contact and build relationship.