The Responsible Finance Podcast

Ready for some big numbers? How about £165 million? Just one of the staggering figures revealed in Salad Money's first ever impact report.

Salad CEO Tim Rooney tells us how the social enterprise, which lends to NHS and Public Sector workers, has helped applicants identify £165m in benefits they could apply for but were not claiming.

Its customers "spend to and not beyond their means," he says, "but when they are faced with a financial hurdle, they typically will turn to credit and that's when we are there." It has saved them at least £5.2m in interest, according to its new report.

He covers multiple parts of Salad Money's social impact. 4 in 10 borrowers have had a county court judgment (CCJ) in the past, but these are "not necessarily a barrier" because of the firm's 'More Than Your Score' ethos – "we've never used credit bureaux (credit reference agencies) to make decisions about affordable and appropriate lending."

So how does it do it? Tim explains how Open Banking powers its affordability assessments and can unlock multiple other benefits for applicants – he's excited about the potential to help more people get broadband and utilities social tariffs they are eligible for.

The report includes calls for action which would build financial inclusion and help the millions of people excluded from credit. Tim gives details.

Salad has developed its own machine learning tools to analyse the four to six thousand data points it gets per applicant. Tim describes how these help it understand the inflationary and other pressures consumers are under. "We're attuned to using the data to help us make decisions. It's not a machine making a decision, it's a machine helping our team to make the best decisions for borrowers."

The report has multiple other metrics and maps Salad's impact against an ESG (Environmental, Social and Governance) framework and specific UN Sustainable Development Goals (SDGs) such as gender equality too.

Impact Investors, Tim says, are now waking up to the social impact that Salad and other CDFIs (community development finance institutions) and social purpose finance providers unlock.

What next?

• Read Salad Money's impact report: https://www.saladmoney.co.uk/news/salad-money-2021-2022-impact-report
• Salad Money is a Responsible Finance member: https://www.findingfinance.org.uk

This is both an extraordinary and, sadly, an every day tale. All over the UK people with children or caring responsibilities compete for shifts or work patterns which fit around them, face the 'poverty premium' or are locked out from opportunities.

"I was dismissed on so many levels," says Jules Hawkins. "I knew I was capable of more and I knew I wanted to be a taxpayer."

Jules' "whole world crumbled" when a new owner of a business she'd long worked for refused to allow her to work flexibly around childcare.

Everything escalated out of control: she had to move to lower-paid work, lost her home, her credit score was destroyed and Jules was hit by "everyone charging me more for everything."

There are so many ironies in Jules' story and this interview illustrates how housing and childcare policies let many people down. But ultimately Jules approached Purple Shoots at a point where she was hugely vulnerable and describes how "they quite literally saved my life."

Jules runs her own businesses now, including the pregnancy bed cushion she designed herself and a business network for single mums. She's repaid her Purple Shoots loan and even pledges a percentage of her sales to support the organisation to help others.

She has lots to say in this interview about childcare, minimum income floors, entrepreneurship, marketing and business development. And she spills the beans on what she said to Rishi Sunak this summer.

What next?

• Jules is director of KIH Products Ltd – https://kihproducts.wordpress.com/ and founder of The Single Mums Business Network, "a Business Network, with a Social Conscience" – https://singlemumsbusinessnetwork.com
• Purple Shoots – https://purpleshoots.org
• Purple Shoots is a member of Responsible Finance. More about Responsible Finance providers: https://www.findingfinance.org.uk

Stephen Tighe and Sheryl Doe founded Allegro Opticians to address specific issues which the eyesight of musicians and performing artists.

The business now has customers from all over the world, has won multiple business awards, has a trusted high street presence with three branches, and has grown from two to more than twenty employees.

Stephen describes his career background in the armed forces and financial services, how he and Sheryl met because of their passion for music, the problems which affect musicians' eyesight, building an ethical supply chain, and why they approached Responsible Finance member, Business Enterprise Fund (a not for profit social enterprise) for finance to grow the business.

It's a thoughtful interview about finding a niche, outperforming cheaper 'chain' competitors, the value of exemplary customer service, how to get the right finance, and why it's important to give back. A masterclass in business development.

What next?

• Allegro Optical's website: https://allegrooptical.co.uk
• Business Enterprise Fund: https://www.befund.org
• Business Enterprise Fund is a member of Responsible Finance, representing a network of "community finance" providers which support businesses, social enterprises and people. Check out https://www.findingfinance.org.uk/

Air pollution contributes to around 40,000 deaths a year in the UK and more in many other parts of the world. Enjoy The Air helps cities achieve air quality standards through policy, infrastucture and behaviour change.

CEO and founder Kate Barnard, an engineer, describes why she launched the business and how viewing cities as engineering systems means it can help local authorities and other organisations develop appropriate "clear air" strategies with measurable results.

Enjoy The Air secured support from Responsible Finance provider, SWIG Finance, so it could create a robust and internationally recognised certification for cities which meet WHO (World Health Organisation) air standards.

Kate explains how Enjoy The Air catalyses behaviour and policy changes, why she approached SWIG Finance and the impact of doing so, who the business is already working with and the importance of "WIIFM" or "What's in it for me?"

What next?

• Enjoy The Air's website: https://enjoytheair.earth/
• SWIG Finance: https://www.swigfinance.co.uk/
• SWIG Finance is a member of Responsible Finance, representing a network of "community finance" providers which support businesses, social enterprises and people. Check out https://www.findingfinance.org.uk/

"They make it feel like it's your fault," says Cath Wohlers about loan sharks. They use manipulation, isolation and coercive control and ruin lives.

Earlier this year a Centre for Social Justice report estimated 1.08 million people in England alone are currently using illegal moneylenders, who prey on financially vulnerable people.

Cath is LIAISE Manager for the England Illegal Money Lending Team. Sharks aren't always easy to recognise. Two thirds of people who the team supported last year thought they were borrowing from a friend, not a loan shark.

She explains the Team's activities during national Stop Loan Sharks Week, and its work 24/7 all year around on prevention, investigation, prosecutions, seizing sharks' assets, and helping people avoid and escape sharks.

And she describes the simple things you can and should do to help. Listen to this important episode to find out.

What next?

• Read our article, The sharks' feeding frenzy and how to starve them
• Read this FT article from late 2021 which covered how CDFIs help people avoid loan sharks.
• Read Iona Bain's article in the i newspaper which explains that illegal moneylenders come in many guises and are embracing social media to ensnare people.

• How can Government stimulate a boom in the social economy?
• Danny has described the role of social enterprises in "fixing broken markets" – what does he mean by broken markets? How can social enterprises address them?
• Banks and tech companies invest heavily in CDFIs (community development finance institutions) in the USA. How can we unlock more investment from tech and corporates into the UK's CDFIs and the communities they serve?
• What role can tax regimes and tax reliefs play in stimulating social investment?
• How can the UK's social lending sector persuade Government to help it scale-up?

This interview took place as a live webinar in May 2021.

Can business be a force for good? Definitely, according David Hanney, CEO of Alpkit, a business and certified B Corp which designs and sources outdoor clothing, camping equipment, bikes and other gear.

Alpkit sells direct-to-consumers through its website and its stores in the UK. It now has more than 100 employees – 6 years ago there were just 12.

It's a great business in many ways, as David explains, with a set of six sustainability principles informing how it operates (and central to how it does business).

Alpkit must be commercially viable to exist. Alongside this, it knows it has a responsibility to its staff, suppliers, customers, the environment and the communities it operates in to be a good citizen.

It's growth has been supported by a responsible finance provider and David explains why and how it secured finance, what the process was, and how it now banks with the mainstream bank which actually referred it to a community development finance institution (CDFI).

He also talks through the accreditation process for becoming a B Corp and Alpkit's scores, how Alpkit ran a crowdfunding campaign which was fully subscribed in just minutes, and how in the next 5 years the most innovative and commercially successful products will be sustainable products.

We recorded this interview with David in Spring 2021. Since then Alpkit's sustainable growth has continued, with new stores in Edinburgh, Betws y Coed, and Ilkley on top of its shops in Ambleside, Hathersage, Keswick, the Metrocentre. It is about to open in Bristol.

What next?

• Alpkit's website
• Its Six Sustainability Principles and 2021 Sustainability Report
• Our member, First Enterprise - Enterprise Loans, has worked with thousands of start-ups and growing businesses (like Alpkit) to help them follow their dreams and achieve their goals.

Imagine yourself on a zero-hours contract, leaving home early in the morning to deliver a sports therapy session. By the time you've spent several hours travelling to the place which booked the session - at your own expense - it's been cancelled. And you don't get paid.

Now imagine making that journey in a wheelchair. Carrying a heavy bag in your teeth. And imagine when the session is not cancelled and you do deliver it, your transformative work is valued by participants, but not by your employer.

Frustrations like these led Louis Speight, a former European-record-holder in the 800 metre T33 Wheelchair Sprint, and a colleague to launch their own social enterprise, Omnis Circumvado CIC.

In this interview Louis describes:

• the profound impact sport made in his life,
• how Omnis works with children and young people in SEN (Special Educational Needs) schools and with elderly people in day centres,
• why "the house will set on fire," when launching a social enterprise.
• succession planning and whether business growth is the right thing to do.
• why Omnis worked with Key Fund, a responsible finance provider, and how this helped the organisation.

And much more.

In one of the worst-offending industries for landfill and modern slavery, Kalopsia proves you can make products more ethically and minimise environmental impact.

A batch manufacturer of textiles, apparel and accessories, Kalopsia is a social enterprise which started as an artistic collective and morphed into a textile producing community interest company.

It makes exciting products (including for brands you will have heard of), supports the textile industry and the people in it, minimises waste and environmental impact.

And it demonstrates all of this is possible as a sustainable (in all ways) business.

In this episode, Adam Robertson and Nina Falk of Kalopsia CIC describe:

• Kalopsia's journey from running galleries and exhibitions to batch manufacturer
• how Kalopsia has learned from other industries to develop highly efficient processes and systems
• what batch manufacturing means
• why their customers work with Kalopsia
• making the user experience on the website as easy as possible
• the importance of design and branding
• the impact of being a finalist in the 2018/19 Social Enterprise of the Year category in the Citi Microentrepreneurship Awards – and of winning the Manufacturer of the Year Award at The Scottish Business Insider "Made in Scotland Awards"
• why Kalopsia worked with responsible finance provider, DSL Business Finance
• their plans for the year ahead
• the widespread misinformation about ethics and sustainability in fashion and textiles - with a key call to scrutinise claims you see.

Glasgow Wood Recycling transforms reclaimed wood which could otherwise be wasted into high quality furniture and products. The social enterprise and charity, launched in 2006, follows the Community Wood Recycling model. It has made furniture from reclaimed timber for a diverse range of customers from the public to hotels, boutique wedding venues, retail outlets, and schools.

The business has prevented over four thousand of tonnes of wood from being wasted, has provided exceptional training to hundreds of people and has 19 employees and 45 volunteers.

In this episode, Peter Lavelle covers engaging and looking after volunteers, securing appropriate customers, staying true to your values, winning the Citi Microentreprenuership Award for Sustainability and working with a responsible finance provider.