SEFA Innovative Lending

This document aims to give you an overview of how we lend and the criteria we are looking for. If, after reading through this document, you decide we are right for you; simply fill in our application form, add the requested information and we will take it form there. If you have any questions please do not hestiate to call us on 02 9240 3603.

 

What is SEFA?

 

Social Enterprise Finance Australia (SEFA) is a new organisation found as an international alliance between European Social Bank Triodos and a number of Australian partners including Community Sector Banking, Macquarie Group Foundationand the University of Sydney.

 

SEFA is committed to making a difference through providing loans to Socail Enterprises and organisation exclusively committed to positive social change.

SEFA has a $20M fund that consists of $10M Australian Government grant and matching funds from the Private and Philanthropic sectors.

We are dedicated to a deeper understanding of the challenges facing organisations who are trying to do something different.

 

Whether you are running a not-for-profit with potential for income generation, developing a business with social objectives, or developing a community based renewable energy scheme, we have the knowledge and commitment to advise on the benefit a loan might make to your organisation.

 

Every loan application is assessed on its merits.

Applying for a loan
Should I apply?

 

We only lend money to businesses and not-for-profit organisations with clear social, environmental or cultural aims.

In addition, SEFA has been developed to support the development of social enterprise which means having a viable business proposition that will generate income to support social and community outcomes.

 

All borrowing from SEFA is individually managed, and your Loan Manager will be on hand to answer your questions and ensure your loan is working for you.

We specialise in lending to less conventional organisations, and as such, rather than measuring your application solely against fixed criteria, we use our experience and judgement to assess it.

How do I apply?

Applying for a SEFA loan is straight forward. Contact details are on this information sheet.

1. Complete an application form and provide us with background information about your organisation, the purpose of the loan and a copy of your business plan.
2. We will meet with you to talk things through and gain a clearer picture of your business goals
3. We will assess your application and if we approve, send a written offer that clearly shows all terms and conditions of the loan. If we do not approve the loan we will inform you.
4. If you think the loan offer is right for you, to accept the offer, sign and return it.
5. We then complete the formalities which will include you signing a Letter of Loan Offer and meeting all pre-conditions.
6. Once this is all completed we will release the funds.

Straightforward applications can take as little as six weeks to process. Complex applications can take longer, however, we’ll keep you informed at every stage, so you know how your application is progressing.

Loans at a glance
What we lend money for

Because each loan application is individually assessed, there are no fixed set rules on what you can ask us to support. Typical loans are used for everything from buying or renovating property to paying for large items of equipment or machinery, providing working capital, refinancing a business or funding a specific project.

In certain cases, we can also consider flexible repayment terms, including restructuring your loan if your circumstances change.
 
Banking and overdraft facilities may be able to be additionally offered through SEFA shareholder, Community Sector Banking (Bendigo Bank) at their discretion.

How much we lend?

We generally lend between $50,000 and $1 million. Maximum amounts available may vary from the above policy due to loan type, security or location.
Interest rates

We offer competitive interest rates (reviewed by SEFA from time to time and are often based on low to mid-level commercial loan rates). We can usually offer you one of the following:

• Bill rate linked – a rate that changes when the Reserve bank makes rate moves.
• Fixed rate – a rate that is fixed for an agreed period of time, to give you assurance about the cost of borrowing

Security

In general, we expect all our loans to be fully secured. This security can be against property, assets that you own, or contracts with reliable customers.

In some cases, we can consider other types of security such as guarantee communities,
where a group of people agree to guarantee a certain amount of your loan. You could also have one or more larger guarantors.

Facility Fees

SEFA normally charges between 1% and 1.5% of the value of your loan to pay for the cost of arranging the facility. If there are legal or other costs involved in getting security for the loan – like a property valuation – you’ll be responsible for paying this yourself.
Decision making

We will always aim to be honest with you. SEFA will not be in a position to approve every loan application. We will endeavour to give you reasons for any decision made. However this is at the total discretion of the SEFA Loan Team.
                                                                                                                                                                               Mentoring and Education
 
Our experience has shown us that business mentoring and education lead to highest repayment levels among borrowers. This in turn encourages best-practice management leading to increased business viability and higher social and community outcomes. SEFA encourages business mentorship and education programs for co-workers.

In some cases we may want to see a commitment to participate in some training as part of the loan approval process.

Next step and Contact details

Happy with what you’ve read here? You can call our lending team for further information or complete the application form which can be obtained from our web-site.

We look forward to hearing from you.

Written applications should be sent to: PO Box R1345 Royal Exchange, NSW 1225

E-mail: loans@sefa.com.au

www.sefa.com.au

Our office is at:
Level 1, 18 Bulletin Place
Sydney 2000

P: 02 9240 3603