Fair For You
Fair For You, an affordable credit provider, secured a total of £1,750,000 of loan funding from SIS over two key phases; taking the organisation from initial pilot phase to a financially sustainable enterprise.
In the UK, it’s not easy for families to access affordable credit, and as a result, people turn to high cost lenders as their only option. Fair For You exists to challenge high cost lending, give control back to families and, overall, to be fair to consumers.
Fair For You (FFY) aims to relieve financial hardship through the advancement, provision and facilitation of affordable sources of credit. They seek to challenge high cost credit in the UK by offering credit that meets modern borrowing needs, identified through extensive research.
In 2016, after obtaining £450,000 of grants to create the initial infrastructure, FFY secured £1,400,000 of loan finance to fund the pilot and development phase of their affordable credit offering. This included a £250,000 loan from SIS’s Social Growth Fund, which is still available to impactful organisations looking for £250,000 or greater. During this phase, FFY confirmed the need for its offering and identified the opportunity to scale-up and create greater impact.
FFY then began making unsecured loans to vulnerable people and families for the purchase of essential household items. Its unstructured and flexible credit offering has proven to better suit customers with little disposable income.
Despite delivering what they set out to do, implementing significant infrastructure improvements and having an effective strategy, FFY’s ambitions continued to grow. In 2019, they secured a further £1,500,000 loan from SIS to assist as they grow into a financially sustainable enterprise.
Now providing flexible, supportive and transparent loans to its customers, FFY products present an alternative for people who would otherwise have to use high cost lenders.
As of 2018, FFY had provided credit for 5,743 customers in Scotland, allowing them to purchase £1,753,573 of essential household items. With an average loan of £305, the organisation has allowed for an average saving of over £500 of Poverty Premium (the idea that those with less money pay more for essential goods) for their customers, calculated by the Centre for Responsible Credit.
Around 60% of the loans provided were for essential kitchen appliances, while other main products include children’s beds, dining room furniture, sofas, carpets and cots. Most products through FFY are delivered free of charge and within a maximum of four days; a critical benefit for those who require essential household items.
“Social Investment Scotland have been really important to the establishment phase of Fair for You. It is not just about their funding that has been loaned out at an increasing level month on month through 2019.
It takes a certain amount of courage to fund innovation in the social space, many investors talk about the need for disruptors and consumer led solutions to change markets that don’t work for our most vulnerable members of society.
SIS deliver on that, brave in standing behind us, consistent in ensuring that it always delivers on mission across Scotland, imaginative in introductions and support across Scotland and pragmatic – which on a new start enterprise in any sector is a wonderful characteristic in an investor to have.
Need to shout out to Chris Jamieson, one of the team that supports us, but on a personal level his belief and willingness to support our work makes an enormous difference day to day, and we value the strength in this relationship that has transformed our proof of concept to a sustainable organisation.”
Angela Clements, CEO, Fair For You