CREDCER Credit UnionCREDCER Credit Union

Cyflwyniad

Presentation

Cris Tomos -Volunteer Board Member

CREDCER

Credit Union StatisticsCredit Union Statistics

United Kingdom – Approx 681 credit unions• Approx 400,000 members• Approx £200 million in assets

Wales – 31 credit unions• 37,500 members• £12.7 million in savings• £39.1 million has been loaned out

Worldwide -• Approx 200 million members

CREDCER Credit UnionCREDCER Credit Union• Interreg 111A Project 2003• CREDCER Launched 2005• Today has 1822 members (May 2012)• £487,000 of savings• £148,000 out on loans• £128,325 Children’s savings• 1.5% return to Children & Child Trust Fund • Can help individuals with community projects

Members & Board of Members & Board of DirectorsDirectors

All Volunteer Board Members.Junior Savers – The future is in their hands

UK Policy Context - Local UK Policy Context - Local Government AssociationGovernment Association”Credit unions can also play an

important part in the social regeneration and economic development of communities…

Credit unions can be very useful tools for meeting some of the key policy challenges facing local authorities.”

Welsh GovernmentWelsh Government Wales Policy Context Wales Policy Context

Putting Wales First: A Partnership for the People of Wales

 “We will develop a strategy for the encouragement of credit unions, as a means of promoting local economic development and of providing access to financial services for those currently excluded from them”.

What is a Credit Union?What is a Credit Union?• A self-help, not-for-profit financial

co-operative• Mutually owned and democratically

controlled• Members savings provide a pool of funds

to make low-cost flexible loans to other members

• Directed by volunteers• Members share a common bond of

residence, employment or association

How Do Credit Unions How Do Credit Unions Work?Work?

• Members save regularly to create a central pool of funds

• Members borrow from the pool at low interest rates

• Interest from loans & savings pay for the running costs

• Balance of surplus is returned to the members in the form of a dividend

Services and Benefits for Individuals/Members

• Access to secure savings and low cost flexible loans

• Free Life Insurance benefits• Convenience of payroll deduction if

agreed by employer• Added value products• Peace of mind that savings are secure• Tackling financial exclusion

Benefits for CommunitiesBenefits for Communities• Access to local regulated financial

services

• Generation and retention of wealth

• Access to micro credit

• Social Enterprise Funds (Shares)

• Collection point in each street!

• Gateway to skills & learning

Reaching out to Young People & Communities

• Establish a Collection Point in the community or local school

• Publicise the credit union within the school & community

• Seek office space for the credit union• Encourage individuals to act as credit

union representatives in the community

Resources for Young People to start a new bank

• Training and development• Adult volunteers to oversee• Starter Pack with forms and guide• Publicity guide for schools to inform

parents• Regular communication on numbers

and statistics

Cymdeithas Cynnal a Cefnogi Cefn Gwlad - 4CG

Aberteifi / Cardigan

Cefndir yn 2010Background in 2010

•Siopau bach yng nghanol y dref yn cau

•Safle Pwllhai yn wag ac yn hyll

•MODUS wedi mynd i ddatodiad

•Land Searches yn dangos fod MODUS wedi talu dros £530k

•Pobl leol yn dymuno ceisio prynu’r safle

•Small town centre shops were closing

•Pwllhai site was empty and an eyesore

•MODUS gone into liquidation

•Land Searches showed that MODUS had paid over £530k

•Local people wish to try and buy the site.

www.4cg.org.uk

Gorolwg * Overview• Gymuned yn prynu Pwllhai purchased by community• Nid er elw * Non profit making society• Parcio Rhatach * Cheaper parking (phase 1)• Ail agor hen siop * Re-open old Co-op shop •Siop Gymunedol * Community shop ( phase 2)•Cynhadledda llawr uchaf - Upper floor

conference area (phase 3)• Parcio ar gyfer datblygiad y Castell * Parking for castle development (phase 3)

Trosolwg o’r SafleOverview Site Plan

Ariannu Cymunedol * Community Finance

Cyfranddalwyr * Shareholders : • £250,000 @ £200 • £20,000 max / person• 1 bleidlais * 1 voting share • Difidend gyda pob shâr * dividends for each share.• Cyfranddalwy yn ethol pwyllgor * Committee appointed by shareholders •Benthyciadau Credcer 5 mlynedd-fforddadwy i bawb*Credcer 5 year loans to purchase shares - affordable to everyone

Cyllid Cymuned a Taclo Tlodi Plant

Community Finance & Tackling Child Poverty

CEFNOGI & CREDIT UNION

www.credcer.co.uk

Ariannu mentrau cymunedol newydd ~ Financing new Social Enterprises

Cyfnod 1 – DatblyguPhase 1 - Development

Cymorth gan Ganolfan Gydweithredol Cymru i sicrhau cymorth Jim Brown o Fryste i gynghori ar y model gorau a

phrospectws cyfranddaliadau.

Assistance from Wales Coop to engage Jim Brown of Bristol to advise on best model and share offer prospectus.

IPS model. Community Benefit Cooperative

Cyfnod 1 – DatblyguPhase 1 Development

•Prynu Pwllhai am £357k Prynu Pwllhai am £357k Paid for Pwllhai sitePaid for Pwllhai site •Benthyciad gan Lloyds TSB £180k Benthyciad gan Lloyds TSB £180k Lloyds TSB loanLloyds TSB loan•Caniatad Cynllunio Caniatad Cynllunio Planning permission for parkingPlanning permission for parking•Clirio’r safle ar gyfer parcio Clirio’r safle ar gyfer parcio Clear site for car parking Clear site for car parking •Cyflwyno peiriannau parcio Cyflwyno peiriannau parcio Install parking meter(s)Install parking meter(s)•Llogi’r Bwthyn Llogi’r Bwthyn Rent out cottageRent out cottage• Cyflogi swyddog parcio Cyflogi swyddog parcio Employ car park attendantEmploy car park attendant•Datblygu’r Siopau Datblygu’r Siopau Develop the shopsDevelop the shops•Sefydlu is-bwyllgorau newydd- Sefydlu is-bwyllgorau newydd- New Sub Committees New Sub Committees –– deunyddiau adnewyddol, deunyddiau adnewyddol, Renewables, Renewables, marketing,marketing, Marchnata, Siopau Marchnata, Siopau Shops.Shops.

Cyfnod 1 – TrosiantPhase 1 - Turnover

Amcangyfrif ceidwadolAmcangyfrif ceidwadol

30c / awr (ar gyfartaledd)30c / awr (ar gyfartaledd)

Llenwi 25% o’r cyfnodauLlenwi 25% o’r cyfnodau

30 x 8 awr x 100 cyfnod x 25% = £8030 x 8 awr x 100 cyfnod x 25% = £80

£480 yr wythnos x 6 diwrnod£480 yr wythnos x 6 diwrnod

Trosiant 51 wythnos = £24,480Trosiant 51 wythnos = £24,480

Trosiant y Bwthyn = £2,600Trosiant y Bwthyn = £2,600

Cyfanswm Trosiant = £27,080Cyfanswm Trosiant = £27,080

Low End Projection Low End Projection :-:-

30p per hour. (average)30p per hour. (average)

25% occupancy of each slot25% occupancy of each slot

40 x 8 hrs x 100 slots x 25%=£80 a 40 x 8 hrs x 100 slots x 25%=£80 a dayday

Per week = £480 (6 day week)Per week = £480 (6 day week)

Turnover for 51 weeks = £24,480Turnover for 51 weeks = £24,480

Turnover of cottage £2,600Turnover of cottage £2,600

Total turnover = £ 27,080Total turnover = £ 27,080

Amcangyfrif GobeithiolAmcangyfrif Gobeithiol

30c / awr (ar gyfarftaledd)30c / awr (ar gyfarftaledd)

Llenwi 75% o’r cyfnodauLlenwi 75% o’r cyfnodau

30 x 8 awr x 100 x 75% = £24030 x 8 awr x 100 x 75% = £240

£1,440 x 6 diwrnod£1,440 x 6 diwrnod

Trosiant 51 wythnos = £73,440Trosiant 51 wythnos = £73,440

Trosiant y Bwthyn = £5,200Trosiant y Bwthyn = £5,200

Cyfanswm Trosiant = £78,640Cyfanswm Trosiant = £78,640

High End ProjectionHigh End Projection :-

30p per hour (average)

75% occupancy of each slot

40 x 8 hrs x 100 slots x 75%=£240 a 40 x 8 hrs x 100 slots x 75%=£240 a dayday

Per Week = £1,440 (6 day week)

Turnover for 51 weeks = £73,440

Turnover of cottage £5,200Turnover of cottage £5,200

Total turnover = £78,640Total turnover = £78,640

Cyfnod 1 – Datblygu

Phase 1 - Development Amcangyfrif ceidwadolAmcangyfrif ceidwadol

Trosiant £27,080Trosiant £27,080

Costau (£7,500)Costau (£7,500)

Difidend 2.5% ar £217k (£5,425)Difidend 2.5% ar £217k (£5,425)

Costau Lloyds TSB (£13,000)Costau Lloyds TSB (£13,000)

Elw £1.155Elw £1.155

Low End Projection Low End Projection :-:-

Turnover £ 27,080 Turnover £ 27,080

Costs (£7,500)Costs (£7,500)

2.5% dividend on £217K (£5,425)2.5% dividend on £217K (£5,425)

LloydsTSB Loan costs (£13,000)LloydsTSB Loan costs (£13,000)

Retained profit = £1,155Retained profit = £1,155

Amcangyfrif GobeithiolAmcangyfrif Gobeithiol

Trosiant £78,640Trosiant £78,640

Costau (£7,500)Costau (£7,500)

Difidend 7.5% ar £217k (£16,275)Difidend 7.5% ar £217k (£16,275)

Costau Lloyds TSB (£13,000)Costau Lloyds TSB (£13,000)

Elw £41,865Elw £41,865

High End ProjectionHigh End Projection :-

Turnover £78,640 Turnover £78,640

Costs (£7,500)Costs (£7,500)

7.5% dividend on £217K (£16,275)7.5% dividend on £217K (£16,275)

LloydsTSB Loan costs (£13,000)LloydsTSB Loan costs (£13,000)

Retained profit = £41,865Retained profit = £41,865

Cyfranddalwyr a Gwirfoddolwyr

Shareholders and Volunteers

Cyfnod 2 & 3 – Datblygu

Phases 2 & 3 - Development •Ceisio am grantiau datblyguCeisio am grantiau datblygu•Sefydlu Siop GymunedolSefydlu Siop Gymunedol•Uned ar gyfer bobl busnes lleol, ffermwyr, Uned ar gyfer bobl busnes lleol, ffermwyr, pysgotwyr ayybpysgotwyr ayyb•Canolfan Gynadledda – sawl llawrCanolfan Gynadledda – sawl llawr•““agoed i syniadau newydd” – y cyfranddalwyragoed i syniadau newydd” – y cyfranddalwyr•Apply for development grantsApply for development grants• Setup Community shopSetup Community shop• Outlet for local businessmen, farmers, Outlet for local businessmen, farmers, fishermen, growers, artists etcfishermen, growers, artists etc•Multi – storey : Conference Area Multi – storey : Conference Area • “ “Openness to new ideas from local people” – the Openness to new ideas from local people” – the shareholdersshareholders

Marchnad Cynnyrch Lleol25 Stondin

LocalProduce Market25 Stalls

The Future is in our hands.

Diolch – Thank YouCris Tomos – Voluntary Treasurer