Fair4All Finance agree Stream partnership to expand lending to under-served workers

Fair4All Finance and Stream have announced a £5 million partnership to deliver affordable workplace loans to workers who might otherwise be pushed towards predatory lenders or miss out on credit altogether.

The partnership combines an initial £3 million impact investment from Fair4All Finance with a £2 million capital investment from Stream and supports the UK Government’s Financial Inclusion Strategy ambition to increase access to safe, affordable and responsible credit.

The investment forms part of Fair4All Finance’s £25 million-plus Guarantees Pilot for Affordable Credit, which combines funding from the Dormant Assets Scheme with private capital. The pilot provides the necessary financial guarantees that enable lenders to extend their lending criteria responsibly to people who may be excluded by conventional credit scoring.

Through the partnership, Stream expects to provide more than 4,000 loans of between £500 and £2,000. The loans are designed for people in steady employment who can afford to repay, but who may be declined by mainstream lenders because of a low credit score or adverse credit history.

Stream, a leading global Workplace Finance platform, partners with employers to give workers access to fair, accessible financial tools designed to boost financial wellbeing and resilience. Loans issued through the pilot will be integrated into Stream’s workplace lending proposition, with repayments collected through payroll.

The loans will be offered at affordable rates, with no late fees, origination fees or early repayment fees. Stream will also closely monitor customer outcomes throughout the pilot to ensure it is supporting positive financial change.

David Coombs, Director of Investment, Affordable Credit, at Fair4All Finance said “We’re delighted to make this investment into Stream and look forward to the positive impact this new lending capacity will deliver for workers across the country. By providing this capital via our Guarantees Pilot for Affordable Credit, we are backing responsible lenders and contributing to closing the affordable credit gap by expanding fair and affordable options for customers.”

Peter Briffett, Co-founder, Stream said “Fairly priced, responsibly delivered credit can actually help people work towards their life goals. However, for many, restrictive lending criteria actually make the situation worse – pushing them towards less favourable alternatives.

“By working with Fair4All Finance, Stream is able to explore innovative new approaches to lending that bring us closer to our shared goal of transforming the financial lives of workers across the UK, and deliver on the aims of the Government’s Financial Inclusion Strategy”.