Small charities, associations and other non-profit organisations face particular challenges in securing finance. The amounts they need are often below EUR 100,000 (USD 115,000), yet the assessment effort for banks is nearly the same as for much larger loans. Smaller organisations also tend to have limited collateral and fluctuating income from donations, membership fees or grants, so access to credit can be difficult.
The SozialBank Business Instant Loan offers a straightforward route to financing. Instead of extensive documentation and lengthy approvals, SozialBank needs only the organisation’s two most recent annual accounts, its number of employees, total assets and annual turnover, and a valid customer framework agreement. An automated credit-scoring process then determines an individual interest rate, and organisations receive a concrete lending offer within a very short time.
By removing the cost and complexity that usually shut small organisations out of lending, the loan widens access to finance for charities and associations that support vulnerable people. This lets smaller charities and associations access funding quickly and reliably, whether for investment or short-term liquidity, saving time and administrative effort so decision-makers can focus on their social mission.
“The digital application process is highly user-friendly and intuitive,” says Nadine Wegner, Corporate Banking Adviser at SozialBank in Cologne. “Approval is granted within just a few minutes. Clients are particularly impressed when we submit the application during a meeting and they receive a lending decision immediately.”
The Business Instant Loan will become SozialBank’s standard solution for smaller-scale lending, enabling the bank to provide smaller charities and associations with credit directly and with minimal bureaucracy.
