Charity Bank promotion on property purchase loans
Charity Bank is the bank of choice for charities that need a loan* - and to make that choice even simpler, it has announced that it will refund arrangement fees for all new loans taken to purchase property that are drawn down in full by 31st March 2015**.
Following a Big Society Capital investment in the Bank*** earlier in the year, Charity Bank has increased funds to lend. The Bank has chosen to offer a discount for loans used to buy property because this is one of the most popular forms of borrowing it experiences. The money that organisations would otherwise pay in rent is often sufficient to pay back their loan repayments.
Normally, the arrangement fee would be 1% of the loan amount, which can range from £50,000 to £2.5 million (or larger amounts in conjunction with other lenders). This means that charities can save between £500 and £25,000. The offer covers all new loans taken to purchase property that are drawn down in full by 31st March 2015.
Loans can be for up to 25 years secured or five years unsecured. Early repayments can be made at no cost, unless the borrower chooses to refinance with another lender in the first two years, and trustee guarantees are not required.
As well as property purchase, Charity Bank loans can be used for a variety of other projects and purposes, including property refurbishment, short-term bridging loans pending receipt of grant funding, working capital, and 'final brick' loans, to start the project when most of the funds have been raised. These other loans are subject to the usual 1% arrangement fee.
One organisation that took out a Charity Bank loan to help with property purchase is Living Paintings, based in Kingsclere near Newbury, Berkshire. Living Paintings, which publishes touch to see books that bring the visual world to life for blind and partially sighted people, took out its first Charity Bank property purchase loan in 1998 and then returned to the Bank when it needed to buy the building next door to enable it to expand.
Camilla Oldland, Chief Executive of Living Paintingssays, "We had 3,000 beneficiaries in 1998 and we now have 10,000 because of the extra space made possible by the loan from Charity Bank, their support and our ongoing relationship. They have an amazing ethos of sharing and helping you out, so they are great mentors as well as being able to potentially solve your problem financially."
Carolyn Sims, Charity Bank's Head of Bankingsays, "Loan finance can be empowering. Loans can help charities grow and expand their services, diversify their income streams or make the most of an available opportunity.
"Charity Bank often lends when other banks will not, provided that the organisation can demonstrate an ability to repay and the loan will help increase its social impact. This is because we take the time to work with each prospective borrower, to understand the organisation and work out the best financial solution. We offer free consultations which makes Charity Bank a sensible choice as the first port of call for any social sector organisation considering its finance options."
Call Charity Bank's loans team on 01732 774050or visit www.charitybank.org/charity-loans for more information, to discuss the suitability of loan finance for your organisation or to apply for a loan. To request a free consultation, organisations can visit: charitybank.org/charity-loans.