- almost 30% of charities who approached a bank had their application turned down
- 23% of potential borrowers were put off as they thought it was too complicated
- 46% of all who thought about borrowing were put off by cost
- 31% who approached high street banks for a loan ended up taking one.
How does this compare to bank lending to mainstream business?
Well, BDRC Continental report (roughly, as these numbers fluctuate over time)...
Well, BDRC Continental report (roughly, as these numbers fluctuate over time)...
- 45% of businesses were initially declined a new loan
- nearly 40% of potential borrowers were put off by the process and the hassle
- somewhere between 20% and 30% thought it would be too costly
- around 60% ended up with a loan
But there is a problem here - which means that charities are less likely to end up with what they want from the banks. The critical statistic here is that 40% of charities offered a loan did not take it up, and the most significant reason appears to be the cost of capital.
Right then, "Social Investment Market", over to you...