Charity BankCharity Bank

Roger OngRoger OngSenior Lending ManagerSenior Lending Manager

How Do You Take The Next How Do You Take The Next Step?Step?

• What is your Mission, Aims and What is your Mission, Aims and ObjectivesObjectives

• Consider what Legal Structure is Consider what Legal Structure is most appropriate most appropriate

• Do you need any Authorisation or to Do you need any Authorisation or to be Licensedbe Licensed

• Speak to an Accountant who Speak to an Accountant who understands the sector in which you understands the sector in which you intend to operateintend to operate

What Information Will You What Information Will You Need?Need?

• Nature of Product/ServiceNature of Product/Service

• CompetitorsCompetitors

• Market size, growth or declineMarket size, growth or decline

• Price comparisonPrice comparison

• Management skills and availabilityManagement skills and availability

• Staff skills and availabilityStaff skills and availability

• Premises – rent or buyPremises – rent or buy

How Can You Plan To Be How Can You Plan To Be Successful?Successful?

• Fail to plan – plan to failFail to plan – plan to fail

• Undertake full risk assessmentUndertake full risk assessment

• Complete risk registerComplete risk register

• Undertake cash flow forecast and Undertake cash flow forecast and regularly updateregularly update

• Quantify terms of trade with Quantify terms of trade with suppliers and purchasers suppliers and purchasers

• What are your funding streamsWhat are your funding streams

What Do Lenders Look For?What Do Lenders Look For?

• C C CharacterCharacter

• AA AbilityAbility

• MM MeansMeans

• PP PurposePurpose

• AA AmountAmount

• RR RepaymentRepayment

• II Interest - InsuranceInterest - Insurance

What Do Lenders Look For?What Do Lenders Look For?

• Balanced business modelBalanced business model

• Sound Financial planningSound Financial planning

• Appropriate management skillsAppropriate management skills

• Good risk assessmentGood risk assessment

• Ability to service any borrowing/debtAbility to service any borrowing/debt

• Return on their investmentReturn on their investment

• Sufficient margin of safetySufficient margin of safety

What About The Future?What About The Future?

• Continually review business modelContinually review business model

• Regularly update cash flow forecast Regularly update cash flow forecast and funding needsand funding needs

• Beware of the one large contractBeware of the one large contract

• Impact on funding streams – Impact on funding streams – financial; political; beneficiariesfinancial; political; beneficiaries

• Management and staff skills and Management and staff skills and availability availability

Uses Of LendingUses Of Lending

• Bridging Loans of (grant) Bridging Loans of (grant) receivablesreceivables

• Short-term working capital purposesShort-term working capital purposes

• New development financingNew development financing

• Long-term asset acquisition, plant, Long-term asset acquisition, plant, machinery and vehiclesmachinery and vehicles

• Property acquisitionProperty acquisition

Loan ParametersLoan Parameters

• Variable rate of interest – 6% - 7%Variable rate of interest – 6% - 7%

• 1% lending fee 1% lending fee

• £5,000 - £750,000£5,000 - £750,000

• Secured & UnsecuredSecured & Unsecured

• Unsecured 6 months to 5 yearsUnsecured 6 months to 5 years

• Secured 6 months to 25 yearsSecured 6 months to 25 years

• Valuation & security fees Valuation & security fees

Monitoring Systems and Monitoring Systems and Information RequiredInformation Required

• Annual AccountsAnnual Accounts

• Management AccountsManagement Accounts

• Cash Flow ForecastCash Flow Forecast

• Bank StatementsBank Statements

• Aged List of Debtors and CreditorsAged List of Debtors and Creditors

• Annual ReportsAnnual Reports

ProjectsProjects

Mull Fishermen's Mull Fishermen's AssociationAssociation

Fighting to save a pierFighting to save a pier

Old Post Regeneration Old Post Regeneration Association Limited - beforeAssociation Limited - before

Old Post Regeneration Old Post Regeneration Association Limited - afterAssociation Limited - after

Energywise RecyclingEnergywise Recycling

Contact Details:Contact Details:Charity BankCharity Bank

PO BOX 398PO BOX 398

194 High Street194 High Street

TonbridgeTonbridge

Kent TN9 9BDKent TN9 9BD

Loan enquiries: 01732 774050Loan enquiries: 01732 774050Tel: 01732 774040Tel: 01732 774040Fax: 01732 774069Fax: 01732 774069E-mail: enquiries@charitybank.orgE-mail: enquiries@charitybank.orgWebsite: http://www.charitybank.orgWebsite: http://www.charitybank.org