Fair for You, the not-for-profit lender set up to provide affordable credit to financially excluded households, has launched an 8 per cent bond on ethical investment platform Ethex as it seeks to raise £500,000 for its expansion in Scotland.
The move follows the success of the group’s 2024 bond offer, which attracted more than 130 per cent of its £500,000 target amid strong retail investor demand for socially focused finance.
The new bond, open to investment from September 8, will channel funds into Fair for You’s three-year growth plan north of the border. The initiative is designed to extend affordable credit to 50,000 additional Scottish families — equivalent to around £17m in lending — and, according to the organisation’s estimates, could deliver more than £270m in social impact.
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Founded in 2015, Fair for You was created to offer an alternative to high-cost credit and illegal loan sharks that disproportionately affect low-income households. The lender is authorised and regulated by the Financial Conduct Authority and operates as a social enterprise, reinvesting any profits to increase its lending capacity rather than paying shareholder dividends. This year marks its 10th anniversary.
Bespoke technology to assess affordability
The group uses bespoke technology to assess affordability, rather than relying solely on conventional credit scores that often exclude low-income households. Customers are able to set repayment schedules that match their circumstances, with no hidden charges. Its product range includes small loans for essential household appliances, a prepaid shopping card accepted by retailers such as Argos, Dunelm and Euronics, and a zero-interest food club developed with Iceland to ease grocery costs.
The need in Scotland is acute. Official data suggest more than a third of adults in the country are financially vulnerable, while one in four would be unable to cover a £500 emergency expense without borrowing. Around 10 per cent of those turned down for credit resort to unlicensed lenders.
Since inception, Fair for You has issued more than 250,000 loans worth £92m to 100,000 customers. Its impact reports suggest £16 of social value has been generated for every £1 lent, with measurable improvements in diet, household resilience and reduced reliance on high-cost lenders.
“Financial breathing space”
Simon Dukes, chief executive of Fair for You, said the organisation’s approach was designed to treat customers “with dignity, compassion and fairness”. He added: “We know the devastating impact that high-cost credit and illegal lending have on families. With continued support from Ethex investors, we can build on our existing work in Scotland and give thousands more people the financial breathing space they deserve.”
Ethex, the social investment platform through which the bond is being issued, has played a growing role in connecting retail investors with ethical and community-focused projects. Chris Butler, Ethex’s interim chief executive, described Fair for You as “transformational” for financially underserved households. “Mainstream finance has turned its back on the people who need it most,” he said. “This bond is another opportunity for investors to stand up for fairness.”
The investment, which can be accessed with as little as £100, is structured to pay a targeted 8 per cent annual return. It is also eligible for inclusion in Innovative Finance ISAs, offering potential tax advantages.
Fair for You hopes that the offer will replicate the oversubscription seen last year, providing a timely boost as it marks a decade in operation. The lender insists that every pound raised will go towards extending access to affordable credit and reducing financial exclusion.
