Help an entrepreneur unable to get loan finance | Blog | Foundation East
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Help an entrepreneur unable to get loan finance

How can you help an entrepreneur whose application for a loan has been declined?

Why our computers don’t say ‘No’  and how, together, we can help SMEs across eastern England to start up, survive and thrive responsibly.

 A short or limited trading history, a lack of assets to put up as security or a less that acceptable credit record are just a few of the reasons why our customers get turned away from mainstream finance providers. Creating jobs, saving jobs, reducing social security (and other) benefit claims, improving lifestyles, community services and community spirit, increasing people’s confidence and improving business skills are just a few of the social and economic outcomes achieved through delivering financial products to excluded SMEs across eastern England.

Take Louise Sinclair and Andy Mansi of Yarco Fencing in Great Yarmouth, Greg Taylor of Retrocorn in Witham, Essex  and Melandy and Paul Leveridge of Burwell Hatchery near Dereham, Norfolk. Each had a viable business plan; each was turned away by mainstream financers for a different reason; each is now thriving, employing local people and contributing to their local economy.

Louise Sinclair and Andy Mansi of Yarco Fencing

Louise and Andy both worked for Yarco Fencing when it was a division of a larger organisation that unfortunately went into liquidation.  Despite the recession triggering the demise of the company Louise and Andy believed that there was still a market for the fencing part of the business and that the Yarco brand name still had value. Their bank manager agreed and, whilst he was unable to help them himself, he referred them to Foundation East.

Read more by clicking here.

 

Greg Taylor of Retrocorn

Greg started his popcorn processing business, Retrocorn, providing traditional British confectionery-flavoured popcorn, from his Nan’s kitchen, but demand increased so quickly that it became evident he needed more efficient production and bagging methods and more suitable premises. A lack of trading history led to Greg being turned down for his loan application by his bank. Luckily, Greg’s bank manager believed in what he was doing and referred him to Foundation East.

Read more by clicking here.

 

Melandy and Paul Leveridge of Burwell Hatchery

The bankruptcy of one of their main customers, who not only owed them money but also left them with surplus perishable stock, would have been enough to force most small companies out of business.  Not so for Burwell Hatchery, one of East Anglia’s foremost duck hatchery and breeding farms, who saw this potential setback as an opportunity to expand its business to include the selling of duck eggs directly to the consumer.  Due to having only recently changed banks their current bank could not help them with the finance they needed but, thankfully, their bank manager referred Melandy and Paul to Foundation East.   

Read more by clicking here.

So, if you are helping a business that is struggling to get finance but who you consider to have a viable business idea, do not despair! As these stories demonstrate, it’s the people at Foundation East that make the decisions, rather than a computer that just says “No”.

Together we might be able to provide that much deserved opportunity to an entrepreneur that will ultimately deliver wide reaching and provable benefits to our whole community.

You may not be aware that, as well as referring customers to Foundation East, you could also invest in those customers by purchasing membership shares in Foundation East. We are a FCA registered mutual society and some of the funding we use to make loans to entrepreneurs comes from people like you, people who believe in a fairer world for all.  Investing through the purchase of Community Investment Tax Relief (CITR) shares could enable you to reduce your tax liability by 5% (of the value of your investment) each year for the next 5 years.  That’s a total of 25%, so why not become a member now and help us to provide responsible finance and opportunity to all?

Footnote

A record year for the responsible finance industry

Responsible finance providers (formerly known as CDFIs) lent over £250 million in 2015, injecting nearly £600 million pounds into the UK economy.  New research from the industry trade body, Responsible Finance, shows that demand for responsible finance grew by 30% in the last year, and lenders responded by helping more people and businesses than ever access fair and affordable finance.  This activity created 10,000 new businesses and 25,000 jobs, and ensured over 45,000 people had access to ethical loans as an alternative to high interest payday loans.

  • About the Author
    Katy Ford

    Katy Ford

    Working for Foundation East since its inception in 2004, Katy became Chief Executive in 2009. She had previously held the position of Treasury Manager for a large insurance company. In this role, she was responsible for developing and maintaining relationships with banks and investment houses on behalf of corporate clients, as well as the treasury team. Before this Katy ran a small hotel, an experience that enables her to understand the challenges faced by Foundation East’s SME clients.