Charity borrowing on the increase, suggesting sector’s confidence is growing
The value of loans approved by Charity Bank for charities and other social sector organisations almost doubled in the first half of 2014 compared to the same period last year.
Over the first six months of this year, Charity Bank approved loans worth £11 million compared to £6 million in the first half of 2013, an increase of 83%. During the same period in 2012, the Bank approved £5 million in loans.
Patrick Crawford, Chief Executive of Charity Bank, says, “Our experience is that charities and other social sector organisations are starting to regain confidence about the economy, and becoming more ready to borrow in order to grow their activities where it is prudent to do so.
“Social sector organisations can benefit if they diversify their sources of revenue and embrace mixed funding, including borrowing. By doing so they can strengthen their organisations, grow their revenues, unlock other funds and expand their impacts.
“The increase in demand for our loans has also been prompted by the effect of cuts in public sector spending on the social sector, compounded by the lack of finance for smaller charities from large commercial banks.”
About Charity Bank
Charity Bank is an ethical bank that takes savings from individuals and institutions, and lends solely to social sector organisations. Since 2002, the Bank’s innovative approach to lending and its mission to benefit society have enabled it to make loan commitments of nearly £200m to over 1,000 charities and other social sector organisations.
Charity Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority No. 207701.