Moneyline | Big Society Capital

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Moneyline

Big Issue Invest

Investment in the largest personal lending Community Development Finance Institution in the UK.

Social impact

Moneyline (East Lancs Moneyline) offers small, short term, unsecured loans to customers who are unable to access mainstream financial services. Moneyline’s supports these customers by improving their access to appropriate, affordable and accessible financial services.

The social impact of the investment into Moneyline will be tracked across the following areas;

  • Financial access/inclusion – the number of people reached, number of repeat customers, value of loans, number of basic bank accounts opened;
  • Financial stability – the number of savings account opened, reduction in cost to the customer against borrowing the same amount from Provident, number of customers that were provided with financial advice;
  • Choice – other lenders approached, difference in rates quoted for the same amount;
  • Improvement in standard of living/well-being – broad breakdown of what the loan is used for, customer surveys to measure satisfaction/improvement in well-being.

Moneyline reports extensively on quantitative impact data across its loan book through its annual impact report. In 2015 Moneyline reached a landmark 100,000 loans issued and £50 million lent.

Financial rationale 

Big Issue Invest lent to Moneyline at an interest rate of 6.75% interest rate. It is hoped that Moneyline can build a track record of financial sustainability and fundraising in order to refinance our’s and other investors’ interests over the coming years.

This investment will enable Moneyline to scale its lending operations across the country by investing further in their loan book growth and by expanding its marketing operations.

Market development 

We hope that this investment into Moneyline will help the organisation to scale and diversify their products to reach a wider market of financial excluded individuals. It is hoped that our investment can also help to demonstrate that personal lending Community Development Finance Institution models that can be both responsible, affordable and appropriate to their clients, as well as sustainable.

Investment details

  • Fund size: £2,000,000
  • Big Society Capital's investment: £950,000
  • Co-investors: RBS Social & Community Capital and The Social Enterprise Loan Fund
  • Key partners: Big Issue Invest
Last updated | 
20 January 2016