4,490 new businesses were created in 2018, and 14,430 jobs created or saved, thanks to support from the UK’s Responsible Finance industry, according to research published today.
The UK’s ethical “responsible finance” sector grew by £19 million (8%) in total in 2018, according to the research.
The figures, published in Responsible Finance: The industry in 2018 also reveal that 84% of the business customers lent to by responsible finance providers in 2017-18 had been declined by other lenders.
The businesses the industry lends to are viable micro enterprises and SMEs, but often deemed too risky to lend to by mainstream banks due to lack of a trading history or their small scale.
The new research published today in Responsible Finance: The Industry in 2018 also demonstrates:
- Responsible finance providers lent a total of £254 million to 52,121 customers in 2018, an 8% increase on the £235m lent in 2017.
- The providers lent £85 million to 5,310 businesses, creating 4,490 new businesses and creating or saving 10,370 jobs. This was a 27% increase on the £67m lent to UK businesses in 2017.
- £138 million was lent to 475 social enterprises– 112 more social enterprises than in 2017 –creating and saving 4,060 further jobs.
- £26 million was lent in 45,900 loans to individuals (£4m more than in 2017). 23,230 of those taking out loans from a responsible finance personal lender had previously borrowed from a high cost lender.
- £5 million was lent to 430 homeowners, bringing homes up to a decent standard and enabling 220 customers to stay in their own homes.
Alongside the lending figures, the research includes postcode mapping showing how responsible finance loans are made in areas with low bank lending and high levels of deprivation.
It also demonstrates how responsible finance providers contribute directly towards reaching the UN Sustainable Development Goals.