Want to expand your business? Bournemouth council could lend you £10,000

Bournemouth Echo: Want to expand your business? Bournemouth council could lend you £10,000 Want to expand your business? Bournemouth council could lend you £10,000

EXPANDING businesses can now borrow up to £10,000 from a finance company set up by Bournemouth council.

The money is being loaned by Bournemouth Community Finance Company Limited (BCFCL), which is wholly owned by the council and began operating earlier this year.

Loans of up to £10,000 are being offered for start-ups or expansions rather than day-to-day running costs, with decisions on eligibility made on a case by case basis.

The company began lending in April, but the first tranche of loans were unregulated – meaning they could only be taken up by a limited company, a partnership of four or more partners, or an individual seeking to borrow more than £25,000.

The latest loans are regulated, which means they are governed by the Consumer Credit Act and can be taken up by partnerships or three or fewer people or individuals borrowing less than £25,000.

Bournemouth council’s Conservative leader Cllr John Beesley said: “With a commitment of up to £15m, the cabinet approved the Community Finance Initiative last July, and I am pleased that it is actively lending so quickly. “By investing this money locally, we will be supporting local businesses directly and helping them to grow Bournemouth’s economy, while also achieving a better financial return for Bournemouth’s council tax payers.”

The community finance company gained its consumer credit licence last year but had to ensure policies and processes were in place to meet the Financial Conduct Authority’s compliance requirements, which came into force on April 1.

Liz Wilkinson, executive director for finance at Bournemouth Borough Council and managing director of BCFCL, said: “The team have worked incredibly hard to navigate the various compliance criteria to which we have to adhere to make sure we are getting the best deal for Bournemouth and the businesses we lend to. “We are proud to have reached this very significant milestone for this innovative, exciting project and are keen to hear from suitable borrowers who we may be able to help.”

To be eligible for a loan, business owners need to be over 18, with a comprehensive business plan, and be based in Bournemouth or operating for the economic benefit of the borough.

Details are available by emailing communityfinance@bournemouth.gov.uk or calling 01202 451118 for an initial discussion.

Comments (7)

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11:59am Wed 25 Jun 14

muscliffman says...

Remind us please, when did we vote for our local Council to begin running a bank offering mortgages and lending to businesses - effectively putting OUR money at risk?
Remind us please, when did we vote for our local Council to begin running a bank offering mortgages and lending to businesses - effectively putting OUR money at risk? muscliffman
  • Score: 3

12:21pm Wed 25 Jun 14

Lord Elpus says...

Beeslys grinning physog reappears after two lovely days of image free echo.
Beeslys grinning physog reappears after two lovely days of image free echo. Lord Elpus
  • Score: 3

12:23pm Wed 25 Jun 14

hadvar says...

I'd like £10,000 to launch a feasibility study about how the town can attract more surfers to our beaches, already jam packed with them as they desert Cornwall in favour of the massive 7 ft tubes we currently get. I'd say that an artificial reef is something that should be looked into, and I'll investigate this with the £10k. Could be a massive benefit to the local economy, and definately not turn the town into a laughing stock.
I'd like £10,000 to launch a feasibility study about how the town can attract more surfers to our beaches, already jam packed with them as they desert Cornwall in favour of the massive 7 ft tubes we currently get. I'd say that an artificial reef is something that should be looked into, and I'll investigate this with the £10k. Could be a massive benefit to the local economy, and definately not turn the town into a laughing stock. hadvar
  • Score: 2

12:45pm Wed 25 Jun 14

MattGillett says...

At least in a regulatory sense this is not as mad as their residential mortgage scheme. I think they'll need a very distinctive offering to compete with organizations such as the WSX business hub for newer businesses (with rates that are only 6% as opposed to 8%). Established successful businesses can normally get even lower rates by phoning the bank.
At least in a regulatory sense this is not as mad as their residential mortgage scheme. I think they'll need a very distinctive offering to compete with organizations such as the WSX business hub for newer businesses (with rates that are only 6% as opposed to 8%). Established successful businesses can normally get even lower rates by phoning the bank. MattGillett
  • Score: 0

1:08pm Wed 25 Jun 14

muscliffman says...

MattGillett wrote:
At least in a regulatory sense this is not as mad as their residential mortgage scheme. I think they'll need a very distinctive offering to compete with organizations such as the WSX business hub for newer businesses (with rates that are only 6% as opposed to 8%). Established successful businesses can normally get even lower rates by phoning the bank.
But then WHO are they going to lend to?

Normal businesses can obtain better deals from the established Banks and lending houses, unless of course there is a risk of default in which case these will say no or fix a very much higher interest rate accompanied by securities.

Our Town Hall should not be going here, it's not what it's there for!.
[quote][p][bold]MattGillett[/bold] wrote: At least in a regulatory sense this is not as mad as their residential mortgage scheme. I think they'll need a very distinctive offering to compete with organizations such as the WSX business hub for newer businesses (with rates that are only 6% as opposed to 8%). Established successful businesses can normally get even lower rates by phoning the bank.[/p][/quote]But then WHO are they going to lend to? Normal businesses can obtain better deals from the established Banks and lending houses, unless of course there is a risk of default in which case these will say no or fix a very much higher interest rate accompanied by securities. Our Town Hall should not be going here, it's not what it's there for!. muscliffman
  • Score: 1

1:25pm Wed 25 Jun 14

Old Colonial says...

muscliffman wrote:
MattGillett wrote:
At least in a regulatory sense this is not as mad as their residential mortgage scheme. I think they'll need a very distinctive offering to compete with organizations such as the WSX business hub for newer businesses (with rates that are only 6% as opposed to 8%). Established successful businesses can normally get even lower rates by phoning the bank.
But then WHO are they going to lend to?

Normal businesses can obtain better deals from the established Banks and lending houses, unless of course there is a risk of default in which case these will say no or fix a very much higher interest rate accompanied by securities.

Our Town Hall should not be going here, it's not what it's there for!.
No, but they do like to play the big business types. That is, two councillors, two council employees, and two outsiders who have appeared out of the woodwork with their own newly formed 'companies'. The Board of BCFLC.
[quote][p][bold]muscliffman[/bold] wrote: [quote][p][bold]MattGillett[/bold] wrote: At least in a regulatory sense this is not as mad as their residential mortgage scheme. I think they'll need a very distinctive offering to compete with organizations such as the WSX business hub for newer businesses (with rates that are only 6% as opposed to 8%). Established successful businesses can normally get even lower rates by phoning the bank.[/p][/quote]But then WHO are they going to lend to? Normal businesses can obtain better deals from the established Banks and lending houses, unless of course there is a risk of default in which case these will say no or fix a very much higher interest rate accompanied by securities. Our Town Hall should not be going here, it's not what it's there for!.[/p][/quote]No, but they do like to play the big business types. That is, two councillors, two council employees, and two outsiders who have appeared out of the woodwork with their own newly formed 'companies'. The Board of BCFLC. Old Colonial
  • Score: 1

7:36am Thu 26 Jun 14

skydriver says...

Lord Elpus wrote:
Beeslys grinning physog reappears after two lovely days of image free echo.
He is a close second to the leader of Christchurch council neither can wait to long before they must have their faces in the local papers, Why I do not know,
[quote][p][bold]Lord Elpus[/bold] wrote: Beeslys grinning physog reappears after two lovely days of image free echo.[/p][/quote]He is a close second to the leader of Christchurch council neither can wait to long before they must have their faces in the local papers, Why I do not know, skydriver
  • Score: 0
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