Social Investment Scotland and The Robertson Trust have invested £500,000 into ethical lender Fair for You.
The combined funds will give 3,000 Scottish households the chance to help themselves out of poverty by increasing the availability and affordability of credit on essential household items, generating an annual saving of around £1.7m for those customers.
Fair For You is the only UK wide not-for-profit challenger to high cost credit providers. Founded in 2015 by Angela Clements, a qualified banker and formerly CEO of the largest community based credit union in the Midlands, it provides loans to families on a very tight budget, many of whom will be in low paid employment, for items such as washing machines, fridges, buggies and bunk beds.
Fair for You has a rapidly growing base of about 5,000 customers, including 750 customers across Scotland, who have collectively saved over £400,000 (about £580 per household) through the avoidance of high cost credit, additional hidden charges for warranties, insurance and installation and unaffordable penalties for late payments. That’s money that stays in the household to meet their rent or other bills, start to build up savings or spend on other essentials, often for their children; helping address the issues of poverty.
The loan finance investments of £250,000 from Social Investment Scotland, leading lender to Scotland’s third sector, and £250,000 from The Robertson Trust, the largest independent grant giving Trust in Scotland, have been secured in a joint funding round with Esme Fairbairn, Joseph Rowntree Foundation and Tudor Trust.
Angela Clements, CEO, Fair for You, said: “Fair for You has already made significant strides in helping low income families in England through our low cost credit products, so we’re confident that we’ll see similar levels of demand in Scotland. The investment from SIS will help us to meet that demand through the affordability and availability of finance, helping us to create a real and long-lasting contribution to alleviating poverty in Scotland.”
Alastair Davis, chief executive, Social Investment Scotland said: “Affordable credit has been a growing social problem in recent years. Families on low incomes have had little alternative but to use high cost lenders for renting or buying white goods, which all too often results in payment defaults and further financial hardship.
“Fair for You is helping to break this stranglehold by offering transparent and affordable credit solutions which benefits society’s poorest families and individuals in the UK. We’re delighted to be working with Angela and her team to help support the growth of this business in many of Scotland’s poorest communities, where access to low cost credit is so desperately needed.”
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