THE race is on to secure funding for a charity touted as a role model for others lending to start-up firms.

Fredericks Foundation, based in Chalgrove, lends cash to businesses turned down by banks for being “too risky.”

Chief Secretary to the Treasury and Liberal Democrat MP Danny Alexander visited Fredericks Foundation on Monday, praising its work as “one of the most successful of its type in the UK”.

Oxford Mail:

Chief secretary to the Treasury Danny Alexander, right, meets Fredericks Foundation chief executive Charles Dodwell  

Charles Dodwell, chief executive of Fredericks Foundation, told the minister that the charity’s funding from Oxfordshire County Council runs out in three weeks’ time, so the race is on to find alternative backing.

He explained: “We are delivering jobs and businesses very cheaply and think we deserve some sort of Government funding for doing that.

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“We’re not giving people a hand-out, we’re giving them a hand-up.”

Mr Alexander met four entrepreneurs who have been given cash loans and support from business mentors.

And he heard how the foundation lends only to those turned down by banks after being labelled “too risky” for investment.

He said: “I want us to look at it and work out what they are getting right and how they are doing it, so we can use Government funding to help them expand.”

Despite lending to people banks consider high-risk, the charity has a strong success rate, with 82 pence out of every £1 it lends paid back.

It lends up to £10,000 to start-ups and up to £20,000 for those with existing businesses, with the typical loan being at around £5,700.

Loans are paid back monthly, with added interest of anything from six to 15 per cent and repayment takes four years on average.

Since launching in Oxfordshire just over three years ago, Fredericks has made 29 loans, worth a total of £165,000.

As a registered charity, profits are ploughed back in so it can be loaned out again.

Fredericks Foundation consultant Audrey Slade said: “It was a chance for the Chief Secretary to the Treasury to hear why this kind of support is important. It’s a cost-effective way that people can create a job for themselves and go on to create jobs for others.”

The charity helps candidates put together a business plan and prepares them before they go before a panel to pitch for the cash.

Foundation founder Paul Barry Walsh said: “ The banks have a different criteria and look at credit history, whereas we ask ‘Is this idea viable and is this person the right person to do it?’”

Its office space at Monument Park is free, thanks to Oxfordshire businessman Mike Jennings, who owns the business park.

Clinic is in fine health after loan boost

OSTEOPATH and pilates instructor Monica Franke, who runs Bletchingdon-based natural health clinic needed a loan to kickstart her business. 

But despite having run a successful practice in Oxford, the mother-of-one, was turned down by her bank.

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 Monica Franke benefited from a loan from the Fredericks Foundation to start natural health clinic  

Ms Franke, 40, who has a three-year-old son, said: “The first thing you have to do is get through the bank’s computer.

“But because I had recently had a child, my income was lower and I was rejected immediately.”

Fredericks Foundation loaned her £6,000 and since opening Clinic on the Green 21 months ago, she has regular clients and turnover is rising.

Ms Franke, from Bletchingdon, added: “The service and extra time that they put in around the loan, especially the mentoring, is invaluable.

“It’s not been easy but it’s great to know there is a fall-back and that I’m able to defer repayments for a couple of months should I need to.” 

Dog lover's pet project

DOG LOVER and former advertising agency creative director Natalie Tate used to run her own cafe and music venue, but wanted to do something connected to her love of canines.

She launched a mobile dog-washing venture, after struggling to find somewhere to have her own pet bathed.

But when she asked her bank for help with start-up costs, they refused.

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 Natalie Tate is now running a mobile dog washing service  

She said: “My experience and background in marketing stood me in good stead for setting up a business. 

“But when I went to the bank to open a business account, they wouldn’t even give me a £1,000 overdraft facility.”

Ms Tate, 51, from Thame, was able to borrow £9,000 through Fredericks Foundation.

Three years on, she has more than 150 regular clients, trains others and is launching her own design of hydrobath.

She added: “I know I can talk to them about extra money, if I need it.

“And if I have a month where I’m struggling to meet the repayment, I can defer.”

Car repair firm back on track

DAVID Benbow’s firm Composite Technologies repairs and makes parts for race cars, including for glamorous events such as the Le Mans 24-hour race.

Mr Benbow, a former team manager at Banbury-based Prodrive and his business partner Michael McCrohon, employ three staff at Eynsham-based Composite Technologies.

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 Composite Technologies provide specialist parts for race cars including those in the Le Mans 24-hour race

But four years ago, the pair hit a rough patch after two clients went into administration and left them out of pocket.

Mr Benbow, 63, said: “We approached the bank to try to take out a temporary loan to tide us over.

“But despite having put thousands of my own savings in, the bank just came back with a tick-box mentality that we didn’t match their criteria.”

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David Benbow

Mr Benbow approached three banks, before being referred to Fredericks Foundation which loaned them £15,000.

He added: “We repaid the whole amount in 12 months and plan to double our team to 10 over the next 18 months.”

Starting up need not be like walking a tightrope

AFTER a two-year contemporary circus and physical performance course, Oliver Ward worked as a circus performer and stunt man.

He then set up Oxford Circus to teach acrobatics, trapeze and tumbling to others.

To help with start-up costs, Mr Ward, 21, from Westcote Barton near Chipping Norton, was given a £2,500 loan by Fredericks Foundation.

Oxford Mail:

Oliver Ward took a loan of £2,500 to start his business

Eighteen months later he has paid back 80 per cent and his Wolvercote-based firm has branched out into doing corporate entertainment events.

He now plans to open four more branches over the next two years – in Stoke on Trent, Manchester, Birmingham and London.

He said: “We’re certain this will be the next big craze that hits the UK. 

“What FF are doing is great. Banks are only in it for money whereas FF are interested in your business. 

“Having a mentor helps phenomenally. I can put in a call if I need help and I have been networking and learning a lot from other entrepreneurs.”