“CREDIT! BORROW! QUICK APPROVAL!” If you’re familiar with seeing these words in adverts for financial services, you’d be forgiven for thinking that credit is more readily available than ever.
So when it comes to borrowing, why are schools still reluctant to consider borrowing to achieve their goals?
Could it be that commercial lenders simply don’t have the appetite for lending to schools – or simply that borrowing is perceived to be incompatible with their aims? In an era of reduced income sources, maybe borrowing does have its place.
Typically, traditional high street credit providers are often simply trying to sell more products rather than listen to their customer, meaning that a school’s mission and the credit process are at odds. This has led to the rise of specialist alternative providers such as CAF Bank, whose mission is to provide low cost banking services to as many charitable organisations as possible, using its specialist knowledge to enhance the borrowing process.
‘The certainty of a pre-planned spending and borrowing programme can alleviate potential risks and unexpected pressures,’ says Simon Proctor, head of lending at CAF Bank. “We work in partnership to understand your needs, and ensure the right product is taken with a realistic timescale to repay. We want to ensure that any school utilises the best type of product for its aims and doesn’t feel pressured into taking finance it might not need.’
With traditional sources of income via grants starting to have more clauses and caveats attached to them, often around the impact of the monies, a loan may be seen as a more appropriate option. CAF understands that schools work on tight margins and the ability of certainty with regards to their repayments is a key driver of any finance requirement. Our loans don’t have re-price clauses so you know the margin you have agreed is the margin you will stay with.
So when you are looking for a bank who understands what and who you are behind the balance sheet, talk to CAF Bank.
For a limited time only, CAF Bank is not charging an arrangement fee on secured loans: this offer only applies to our standard arrangement fee and to new loan applicants. Loans must drawdown by 30 June 2014 and other fees may still be charged.
Contact their UK-based team dedicated to charities on 03000 123 444 or visit www.cafonline.org/arrangementfree for more information.