HOW CREDIT UNIONS CAN HELP THE SELF EMPLOYED & SOLE TRADERS DURING THE CORONAVIRUS PANDEMIC

HOW CREDIT UNIONS CAN HELP THE SELF EMPLOYED & SOLE TRADERS

Experience gained by becoming a co-operator in 1958, self-employed since 1977, a Turnaround professional since 1980 and, since 1993, an Enterprise Counsellor (when I led on the establishment of the first Common Bond in the UK for self-employed people across different trades and professions).has led to a comprehensive knowledge of loan underwriting for the self-employed, sole traders in business start-up, rescue/turnaround situations, particularly those without business plans, historic accounts and tangible assets.

None of these areas are covered by the approaches put forward thus far by the UK Government and, through it, the banks!  And so these opportunities are ideal for credit unions to fulfil two of their key trading objectives, one commercial and the other social

1. Stimulate the economy by financially empowering people
2. Carrying out their corporate social responsibility.

Lending to the self-employed is not a formulaic exercise or a precise art, particularly for those selling a skill or service; e.g. who would have made a loan to an employee of a furniture and record retailer in Liverpool in the 1960s to finance an unknown composing and performing “pop group” – The Beatles?

Any credit union in Great Britain can call the Consultancy – 020 8241 2736 (landline only please) – to discuss any such loan application in utmost confidence.

Information required ....

1. No details identifying a “real person” will be requested, but the person’s family circumstances will be relevant, as well as their age.
2. Details of the trade or profession being followed, experience of it and the origin of previous income sources – their job; as well as
3. The applicant’s commitment, both physical and financial, to the business.

Lending to the self-employed is very much a question of “know your customer” - applying the basic business risk appraisal and life skills of the loan underwriter to every situation and knowing the right questions to ask.

Health warning -  The Consultancy only provides information;  again advice will not be given and any lending decisions fall within the remit of the credit union only.

This is a totally free service, however, the credit union must instigate all contact, make all incoming telephone calls.  No correspondence will be undertaken to limit the costs of the Consultancy.Again, this service is totally free, but should a credit union feel inclined to do so, it can make a donation to the ICULD&E Foundation’s bursary fund – details here.