When talking about money, the importance of speaking to a human being has scored highly in a new survey of the criteria business owners use when seeking a lending partner.
A Talk Money opinion poll conducted by SWIG Finance, in collaboration with Lendology and Great Western Credit Union, found that almost one-third of respondents (31%) ranked the ability to discuss their requirements with a human advisor a close second to favourable interest rates (38%).
SWIG Finance prides itself on taking a human-centred approach to business lending, with every customer being assigned to a local, dedicated business manager who will work to understand their business and the unique challenges they face.
The census was timed to coincide with Talk Money Week (4th to 8th November), an initiative by The Money and Pensions Service (MaPS – an arm’s-length body sponsored by the Department for Work and Pensions), to encourage everyone to have more open conversations about their money, from pocket money to pensions.
Research shows that people who talk about money make better and less risky financial decisions, have stronger personal relationships, instil good lifetime money habits in their children, and feel less stressed and more in control in all aspects of life. While events and activities are taking place across the UK to this end, it is hoped the initiative will result in ongoing conversations year-round.
The Talk Money community finance survey participants are leading the way in this area, with 81% being comfortable discussing money and financial matters with others, either openly or when necessary. This left just under one-fifth of respondents preferring to keep such matters private, or avoiding such conversations altogether.
Similarly, the vast majority of interviewees (84%) were very or somewhat confident in managing their finances, with 60% actively planning, tracking and reviewing their performance and 36% having at least a rough idea of what’s going on.
One third (33%) use spreadsheets to track their budgets, followed by 27% who use bank account tracking tools and a further 27% preferring good, old-fashioned pen and paper. Only 10% did not budget at all – and none were lured by 21st century budgeting apps.
When considering a loan, interest rates were a top concern for more than half of respondents (54%), followed by monthly repayment amount (35%). Exactly half considered interest rates when choosing a savings provider, with access flexibility coming second (27%).
More than half (52%) would look to a bank first, with roughly one fifth (19%) turning to online platforms.
SWIG Finance is one of the UK’s leading Community Development Finance Institutions (CDFI), dedicated to providing responsible and ethical finance to individuals and businesses that might struggle to access support from traditional financial institutions like mainstream banks.
A key difference is that CDFIs focus on the potential of their clients and the benefits they generate in their local communities, rather than just their financial history or collateral. This human-centred approach ensures that every borrower is seen as more than just a set of numbers.
CDFIs can generally be categorised into two types: Personal, offering small, affordable loans to individuals and families for essential needs such as household goods or short-term financial challenges; and Enterprise, enabling businesses and social enterprises to expand, hire more staff, and contribute to the local economy.
SWIG Finance specialises in supporting businesses from start-ups to established SMEs looking to grow. In this way, it has supported thousands of small and medium enterprises (SMEs) across the South and West Country of England.
SWIG Finance’s Managing Director, John Peters commented “Rather than relying on algorithms to make lending decisions, SWIG Finance takes a relationship-based approach, with decisions made by dedicated managers who accompany the client from the application process to post-loan support, taking the time to understand their individual needs and help them navigate challenges”.
John Peters, Managing Director, SWIG Finance
Case Study – Exeter Eyewear
Rob Barrow of Exeter Eyewear borrowed £32k via SWIG Finance to develop 5,000 children’s spectacle frames across two ranges, iPlay and SEECreatures. “When I did my first business plan 25 years ago, I went and sat in front of a business manager at a bank and explained what I did. He had never encountered my kind of business before, and we made that connection.
“That’s not how things work anymore with traditional lenders. You phone up, wait on the phone line for an hour, go through the filtering system, fill out forms … Ultimately, no one is making a decision – it’s an algorithm, as opposed to a human being who says, ‘I believe in you.’
“That’s where SWIG Finance comes in. The business advisor – Rachael Taylor in my case – gives you the validation you need, that someone else likes your concept. Explaining it to them might be the first opportunity you have to start selling your business, and their feedback gives you the ‘I believe in you’ feeling that you really want from someone who is going to help you get your business off the ground.”
Photo by Theo Moye 17/11/23 Rob Barrow has set up childrens’ glasses specialists Exeter Eyewear, in Exeter Science Park, with help from the South West Investment Fund.
- This Talk Money survey had 52 respondents across the three participating organisations.
Lendology, GWCU and SWIG Finance – Your community finance partners for the South West.
SWIG Finance, Great Western Credit Union (GWCU) and Lendology CIC have joined forces to raise awareness for community finance solutions to homeowners, small businesses, and individuals across the region. Our partnership aims to empower South West communities to take control of their finances and work towards building a brighter future.
If you are an individual looking for financial support, get in touch with Lendology or GWCU to see how they could support you.
For business owners looking for business funding, SWIG Finance has a range of funding for start up’s and small businesses, get in touch to start your journey.
About Us:
Great Western Credit Union: Affordable personal loans from £100 up to £15,000.
Whether you need a new car, looking to remodel your kitchen, or simply hoping to consolidate your debt into one easy, affordable repayment, GWCU offers personal loans that could help you achieve your goals.
Apply for a loan here: https://greatwesterncu.org/loans
(You must live, work or study in GWCU’s membership area, covering Bristol, Bath, Dorset, Gloucestershire, Somerset and Wiltshire to access a loan or savings account.)
Lendology: Home improvement loans £1,000 up to £25,000.
Ready to improve your home’s energy efficiency and live in a safer, warmer environment? Click below to apply with Lendology CIC and access homeowner loans backed by councils. Prioritising holistic assessments tailored to your needs, we’re here to make a difference in your home and community. Loans are subject to status.
Apply here: https://www.lendology.org.uk/apply-now/apply-now-full/
SWIG Finance: Business loans from £500 up to £250,000.
SWIG Finance is a people-based company that provides loans and support to help smaller businesses in the South and West Country grow. We base our lending decisions on potential rather than collateral, which means that we can often support businesses when others can’t.
Apply here: https://www.swigfinance.co.uk/
Loans are subject to status.