Economy
69% of charities struggling to obtain loans from high street banks
More than two-thirds of charitable organisations fail in obtaining loans from high street banks, according to a survey by the Charity Technology Trust (CCT) and commissioned by Charity Bank.
The survey, which looked at the experiences of 258 UK charity workers, found that 69% of the charities which applied for a loan from high street banks were either turned down or the conditions were too onerous.
The survey also found that 65% of charity workers felt that obtaining loans can assist organisations in achieving their overall goals.
Forty-six per cent of the respondents also believe that loans from high street banks are too expensive, and 40% have previously refused loans due to excessive terms and conditions.
Patrick Crawford, Charity Bank CEO, said, “The population of charities, social enterprises and other community organisations that are creditworthy but who cannot secure finance from traditional sources is large. As government funding is cut, costs rise and donations shrink, the need for borrowing continues to increase.”
He added that the Charity Bank was doing all it could to help charities that were struggling to find funding: “Organisations such as Charity Bank must respond to this increasing need. We have made it our aim to help meet demand by growing our own lending capability.”
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