Five Lamps

Five Lamps is a responsible finance provider, regulated by the Financial Conduct Authority, offering fair and affordable personal loans as an alternative solution to high-cost credit.

To date it has provided close to £40 million of affordable personal loans primarily in the North East of England, but more recently in Scotland and, following considerable investment in systems and infrastructure, throughout England and Wales.

The Third Sector Investment Fund committed £1.1 million, as part of a £5 million loan to Five Lamps, with the aim of helping vulnerable households across the UK break out of the cycle of high-cost debt.

Financial exclusion is a pressing issue in the UK, and high-cost credit is widespread. 3.1 million UK adults have one or more high-cost loans or have had one in the past year. Potentially vulnerable people are twice as likely to have used high-cost credit as other UK adults; younger single parents are three times as likely. 6.5 million UK adults have no cash savings, leaving them particularly vulnerable to financial shocks and more likely to turn to high-cost credit in times of financial need[1].

 

The Third Sector Investment Fund committed £1.1 million, as part of a £5 million loan to Five Lamps, with the aim of helping vulnerable households across the UK break out of the cycle of high-cost debt.

SASC is one of nine investors and the deal represents the largest-ever single investment in a UK community lender.

The new investment will allow Five Lamps to grow the scale and impact of affordable credit to vulnerable individuals nationally.

 

The funding will mobilise over £60 million of lending, enabling Five Lamps to offer over 100,000 affordable personal loans under its Conduit brand, through a dedicated subsidiary called Five Lamps Trading Ltd.

The Financial Conduct Authority ‘High Cost Credit Review’ published recently highlighted the need for more alternatives to high-cost credit. Five Lamps is that kind of different lender, offering a better choice to people with little or no financial resilience, who would otherwise need to resort to high-cost or unregulated lenders in times of crisis.

 

"Our Loans plus the services we provide change peoples' lives and support them to break free of the debt cycle and poverty premium. This financial and social impact as well as the disruption to and transformation of the high cost credit market is doable thanks to this ground breaking investment." (Lisa Pickard, Five Lamps CEO)

 

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