Loan Fund Management
Co-operative & Community Finance
the lender for social purpose
Loan Fund ManagementUsing ICOF's authorisation by the Financial Services Authority Co-operative & Community Finance has been pleased to help CDFIs and other lenders by managing funds on their behalf.
This means that our unrivalled experience of lending to our sector, combining the taking of risk with minimising loss rates, can be exploited. The management of loan funds can operate at three levels, and the preferred one will depend upon the degree of day to day involvement which the Loan Fund requires from us. The beauty of these arrangements is that they are flexible, as different elements of each level can be blended. Clients for these services can be local, regional or national.
Level One: Administration and Control
At this level Co-operative & Community Finance will provide the administration of loans as in our normal Back Office service.
Loan advance release documentation.
Perfection of security.
Charging and collection of interest and loan capital repayments.
Financial and credit control; book keeping; reactive reporting of repayment problems.
Client monies can be held either by ourselves or by the Loan Fund itself.
Level Two: Appraisal and Monitoring
In addition to all of Level One, this would include:
Checking that applicants comply with the Loan Fund criteria.
Full appraisal and written report on each client.
Assigned Co-operative & Community Finance business advisor who will liaise with and attend all relevant Loan Fund Board or Committee Meetings.
The regular, proactive monitoring of Loan Fund borrowers.
The provision of business, financial and marketing advice to borrowers, where appropriate, in association with existing provision.
The provision of monitoring and financial reports to the Fund.
Level Three: A Comprehensive Management & Investment Service
This would include all of levels one and two together the management of the Loan Fund's cash balances with investment advice to ensure best ethical investment practice and rate of return. This would involve adding the cash balances of the Loan Fund to our own cash balances to benefit from economy of scale and our investment experience. There are several mechanisms for doing this.
Alphabeds co-op is a C&CF customer based in Carmarthenshire, that produces timber frame beds and handmade mattresses.
