Credit booms as recession looms

Lenders 'may not have cash to satisfy demand'

Business is booming at third sector credit providers because of the recession - and some are worried they will not have the money to satisfy demand.

"Our members say there's been a big increase in demand," said a spokesman for the Community Development Finance Association. "But many are raising concerns about the escalating need for funds.

"The message we're getting is that organisations still have capital but, if the rate of borrowing continues, there could be problems in 2009."

Community development finance institutions lend and invest in deprived areas and underserved markets that cannot access mainstream finance. Their investments and loans totalled £287m last year.

A spokesman for the Association of British Credit Unions said the number of requests for loans was going up, but this had been matched by a boom in savings, allowing credit unions to continue lending.

Topics:
Finance

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners

Markel

Expert hub

Insurance advice from Markel

How bad can cyber crime really get: cyber fraud #1

Promotion from Markel

In the first of a series, we investigate the risks to charities from having flawed cyber security - and why we need to up our game...

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now