FAQs
Who are Responsible Finance?
Responsible Finance is the industry body for the UK’s Community Development Finance Institutions (CDFIs). These community lenders are purpose-driven and aim to increase access to fair finance for individuals, businesses, and social enterprises that are often excluded from mainstream lending.
Can Responsible Finance help me get a loan?
We don’t provide loans or make specific recommendations. However, we can help you find a lender from our network, so you can choose the best option for your personal, business, or social enterprise needs.
What types of lenders are part of Responsible Finance’s network?
Our network includes:
- Personal Lenders: For individuals needing loans for everyday items or unexpected bills.
- Business Lenders: For SMEs looking to access fair finance and support for growth.
- Social Enterprise Lenders: For social enterprises requiring funding that aligns with their mission and impact goals.
What do personal lenders offer?
Our personal lenders provide:
- Loans for small amounts or to people with limited credit history.
- Fair and responsible checks to ensure you can afford the loan.
- Some also offer savings products and tools to identify unclaimed benefits or grants.
- Note: All our lenders are direct lenders, not payday lenders.
How do business lenders support SMEs?
Business lenders in our network use a relationship-based approach to provide loans. They:
- Consider more than just financial data, taking a holistic view of the business.
- Speak with owners and management teams to understand and assess their plans.
- Analyse trading history to identify temporary dips in revenue.
- Offer expertise in local markets and avoid unfair restrictions on lending to specific sectors.
What makes social enterprise lenders unique?
Social enterprise lenders understand the specific needs of social enterprises. They:
- Consider social and environmental impacts alongside financial performance (the “triple bottom line”).
- Offer tailored, flexible loan and grant options.
- Focus on businesses excluded by mainstream lenders, helping them grow sustainably and create positive change.
Do CDFIs compete with mainstream lenders?
No, CDFIs complement mainstream lenders. Their lending is additional, helping businesses that mainstream banks or Fintech lenders might decline. By supporting these businesses, they foster economic growth and innovation.
Where can I learn more about Responsible Finance?
To find out more, visit our website or check out our social impact report to see how our network of CDFIs makes a difference.