We now offer a range of interest rates

Earlier this month we announced that we are moving from one fixed interest rate to a suite of interest rate options for new deals under our Social Enterprise Investment Fund and Futurebuilders loan funds.

We want to do our very best in these hard times to ensure third sector organisations that are not adequately served by other lending markets have access to affordable finance. So while we recognise that a fixed rate option is desirable to many of our customers, we also know that due to the individual circumstances of other customers and their projects, flexibility in interest rates is also appealing. Introducing these options for customers to choose from is our response to the current times and the resulting needs of our unique customer base.

We now have four options to choose from:

1. 6% for an initial three year period.
2. 0% for an initial two year period
3. 2% for an initial five year period
4. Floating rate of 2% over base for the term of the loan. Minimum interest rate set at 2% and maximum set at 10%.

To qualify for options 2, 3 and 4 customers must commit by 30 November 2009 and draw down their funds by 31 March 2010.

Yet how do you know which rate is best? It is not our role to dictate what option is best but we will advise potential customers if they are eligible for the new rates and talk them through the consequences of each during assessment. But ultimately it is their choice and we would encourage our customers to seek independent financial advice if they are unable to choose on their own.

What if this is an organisation’s first loan and the idea of taking on debt is nerve-wrecking? Well, during our robust diligence process organisations are evaluated for their ability to flourish – by growing and developing their business – as a result of our investment. We would never agree to lend money to an organisation who cannot afford to pay it back.

We’re happy to talk to potential customers to demystify what can be a new and unfamiliar process. Give us a call!

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