2012 – another good year for the Fund

2012 was another good year for the Co-operative Loan Fund.  We made 14 loans to co-operatives totalling £315,000. The smallest was £6,000 and the largest £75,000.

Cumulative lending graph
Cumulative lending by Co-operative Loan Fund, 2002-12

Since the Co-operative Loan Fund started in 2002 we have lent very nearly £3m to co-operatives. When the loans are repaid the money is lent again to other co-operatives. Since 2002 the average default rate has been only 3%.  This is despite the fact that the Co-operative Loan Fund deliberately lends to ventures that mainstream lenders would consider to be ‘high risk’. It shows that 1) our loan assessors have very good judgement and 2) co-operatives are generally more reliable than most small businesses.

As usual, the Co-operative Loan Fund made a small operating surplus in 2012, which means that all of our donors’ funds were available for lending and were not spent on administration.