Business Advisors Network

1
Business Advisors Network

• Taunton
• 17th January 2006

2
Charles Dodwell

• Head of Regions South of England
• Community Development Finance Association

3
Background

• 25 years in family business
• Gloucestershire Development Loan Fund
• Joined cdfa September 05

4
What is a CDFI?

• Finance providers with a social mission
• Fill gaps in access to finance lend to
  businesses, social enterprises and individuals
  when banks will not (Computer says no!)
• Offer loans, equity, business support and money
  advice
• Lend to micro and small businesses, social
  enterprises and voluntary and community sector.
• A geographical or sector coverage

5
What is a CDFI?

• Independent, professionally managed
• Recycle finance and lever in private sector funds
• Generate social and financial returns
• Not for Profit
• Lending to bankable propositions

6
How big is the CDFI sector?

• The cdfa now has 67 members (55 at the end of 04)
  and 37 supporter members, and represents over 90
  of the sector members
• In 2004, members controlled capital of 400
  million and had made 147 million in loans and
  investments (63 consumption loans)
• Sustained over 85,000 jobs and created 10,000
• Levered in 160 million additional funds

7
Why do we do it?

• Because the Banks will not
• Because an entrepreneurial spirit is no respecter
  of post codes
• Because the money we lend is recycled into the
  community
• Because what we do changes lives, changes the
  community and changes the nation
• Because if we dont.

8
What products do we sell?

• Enterprise Loans
• Equity Finance
• Venture Capital
• Home Improvement Loans
• Bridging Loans
• Affordable Housing Projects
• Shared Workspace
• Community Projects
• Personal Loans
• What would you like?

9
What Service do we sell (or give away)?

• Technical assistance
• Mentoring/Monitoring
• Partnered Lending

10
What distinguishes us from other lenders?

• We are social enterprises ourselves
• We are passionate about what we do
• We will do our best to help you
• We are very cost-effective
• We wont try and sell you life insurance!
• We have a great deal of local/sector knowledge
• We work well with each other.
• Flexibility/Innovation

11
Loans vs Grants

• Loans give you independence
• They can help you with financial disciplines
• They do not depend on outputs
• Loans are not subject to government whim
• The need for speed!

12
How to contact us

• www.cdfa.org.uk
• 01242 241132
• enquiries_at_cdfa.org.uk

13
Thought for the day..

• Distrust any enterprise that requires new
  clothes.- Henry David Thoreau (1817-1862)