CIDA - Street Cred

Street Cred has been helping women into self-employment since 1999, through business support and small loans. Street Cred is a group-lending scheme: no collateral, credit history or business plan is required; the group acts both as a support and as a moral guarantee. Each woman is entitled to a first loan of up to £500 (with a 6% service charge) and a second loan of up to double the initial loan (with a 10% service charge). Clients have a year to repay each loan.

Street Cred clients come from many different ethnic groups and cultures. Their businesses include Somali, Bangladeshi and Nigerian catering, African clothing, nail technicians, hairdressers, jewellery designers, crèche providers and cleaning agencies.

Street Cred covers four boroughs: Tower Hamlets, Newham, Hackney and Waltham Forest. There are five full time workers and two part time workers. Bengali, Somali, Arabic, Hindi, French, German, Chinese and English are spoken by the workers at Street Cred.

Street Cred currently works with more than 100 women. To date, nearly 100 loans have been given out since June 2000, totalling over £51,000. Three women who have repaid their first loans are now on second loans to further develop their businesses.

Street Cred is a project of the East End Regeneration charity Quaker Social Action (QSA).

Street Cred - How it Works
Street Cred can help women start their own businesses if they:

Live in Tower Hamlets, Hackney, Newham or Waltham Forest
Have a good idea for a business
Are unable to get a loan from a bank or another organisation
Are unemployed or on a low income.

We do not require a business plan, collateral or information about your credit history.

Instead, we ask women to be part of a group (borrowing circle); this consists of between 4 and 6 women. Clients must attend fortnightly meetings with the development worker, during which each woman will develop her business idea. For the first three months, no loans will be given out. We will discuss issues such as market research, pricing, advertising and basic bookkeeping.

After three months of regular attendance at meetings, two women in the group can apply for their loans. It is up to the group to decide who should take the loans first. Each woman is entitled to up to £500 each. There is a 6% service charge on this loan. The loan can be repaid over a period of up to a year. So if a person borrowed the maximum of £500, and repaid over the course of a year, she would repay £530, which is approximately £10 per week (or £20 a fortnight).

The first two women to take their loans must start repaying immediately. After 2 months of regular repayments, the next two women can apply for their loans. This process continues until all the women in the group have their loans. Once a loan has been fully repaid, the client can take out a second loan of up to double the initial amount. This time, the service charge is 10%. A third loan is available of the same amount.

The borrowing circle relies on the women’s commitment to the group and each other. The women in the group are there to enhance each other’s ideas and business potential. The stronger the group, the more successful the businesses!

Street Cred clients are invited to attend bi-monthly events which are specifically designed to accelerate their enterprises. These events cover both theoretical and practical issues of running a successful business.

For further information or to join please contact Street Cred on 020 7729 9267.

Frequently Asked Questions

How can I start up a business with only £500?
If you want to start up a small business from home for example, catering, hairdressing or dress-making - you can use the £500 to buy basic materials which you might need to get started. This might include a sewing machine, fabrics, a computer, or cooking ingredients. Or you could use it for publicity - leaflets, business cards, posters or adverts in local newspaper. Once you have repaid this loan, you can then take out another loan of up to double the initial amount.

However, if you want to open a café, restaurant or shop, etc., we can tell you about organisations which give larger loans.

Do I have to pay interest?
You do not pay interest. You do have to pay an annual service charge. This serves to cover our costs. It is 6% on the first loan and 10% on the second loan.

How soon do I have to start repaying the loan?
You must start repaying straight away. You may repay over the course of a year. We will agree the amount and frequency of repayments before giving you the loan.

Why do I have to start repaying straight away?
We need the first two women to make regular repayments for two months before we can give out any more loans in the group. This is our “security” on the loan: it reassures us that they will continue to repay the whole loan.

How can I start repaying straight away?
We won’t give you a loan until we are confident that you have some clients lined up, guaranteeing you some income from the moment you take the loan.

What happens if I can’t repay for some reason?
We understand that unexpected events can happen, and so we try to be flexible if on occasion you have problems repaying. The most important point is that you TELL US if you find yourself in this situation. We can renegotiate your repayments if necessary. If it’s a case of your business not bringing in enough money, the other women in the group will help you to get things moving again (for example, by helping you with advertising).

Above all, don’t avoid the development worker or the group meetings if you can’t repay, as this will make things worse. We are there to help you! However, if you continue to not repay and do not negotiate repayments with Street Cred, we will be forced to pursue our default procedure.

Can I spend my loan however I like?
You must spend your loan on your business. This might include materials, publicity, travel costs necessary to your business, etc. You should keep receipts and report back to the group on what you’ve spent your loan on.

What if I’m on benefits? How much am I allowed to earn?
If you are on benefits, there will probably be a weekly limit on how much you are allowed to earn. You should check with an independent benefits advisor as to how much your limit is (for example, try the Citizens’ Advice Bureau or local community groups).

Ask the benefits advisor about the New Deal (self-employment option), in particular:

the six-month test-trading period
the dual account system.

If he or she is not familiar with any of the above, ask him/her to check the benefits manual.

It is important that you consult an independent advisor to clarify your position, before you inform your advisor at the Job Centre.

I don’t live in East London / I’m a man: can Street Cred help me start up a business?

We can inform you about other organisations which cater for other boroughs / for men.

Who's who.....

If you want to get involved or to find out more about Street Cred, please contact the relevant person:

Claire Caffrey: Street Cred Coordinator and Development Worker for Newham and Tower Hamlets (full time)

Dinar Ali: Development Worker for Tower Hamlets and Waltham Forest (full time)

Hiba Ali: Development Worker for Tower Hamlets (part-time)

Myriam Bartu: Development Worker for Newham (full time)

Rachel Benchekroun: Development Worker for Hackney and Waltham Forest (full time)

Naomi Casserly: Development Worker for Hackney (part time)

AWE Sustainability Officer (full time)


Co. name :	Street Cred
Contact : Address: Tel: Fax: Email: Website:	Street Cred, 45-47 Blythe Street, London E2 6LN. 020 7729 9267 020 7729 9267 [email protected] www.quakersocialaction.com
Intro \|\| How it Works \|\| FAQs \|\| Who's who Street Cred has been helping women into self-employment since 1999, through business support and small loans. Street Cred is a group-lending scheme: no collateral, credit history or business plan is required; the group acts both as a support and as a moral guarantee. Each woman is entitled to a first loan of up to £500 (with a 6% service charge) and a second loan of up to double the initial loan (with a 10% service charge). Clients have a year to repay each loan. Street Cred clients come from many different ethnic groups and cultures. Their businesses include Somali, Bangladeshi and Nigerian catering, African clothing, nail technicians, hairdressers, jewellery designers, crèche providers and cleaning agencies. Street Cred covers four boroughs: Tower Hamlets, Newham, Hackney and Waltham Forest. There are five full time workers and two part time workers. Bengali, Somali, Arabic, Hindi, French, German, Chinese and English are spoken by the workers at Street Cred. Street Cred currently works with more than 100 women. To date, nearly 100 loans have been given out since June 2000, totalling over £51,000. Three women who have repaid their first loans are now on second loans to further develop their businesses. Street Cred is a project of the East End Regeneration charity Quaker Social Action (QSA). top Street Cred - How it Works Street Cred can help women start their own businesses if they: Live in Tower Hamlets, Hackney, Newham or Waltham Forest Have a good idea for a business Are unable to get a loan from a bank or another organisation Are unemployed or on a low income. We do not require a business plan, collateral or information about your credit history. Instead, we ask women to be part of a group (borrowing circle); this consists of between 4 and 6 women. Clients must attend fortnightly meetings with the development worker, during which each woman will develop her business idea. For the first three months, no loans will be given out. We will discuss issues such as market research, pricing, advertising and basic bookkeeping. After three months of regular attendance at meetings, two women in the group can apply for their loans. It is up to the group to decide who should take the loans first. Each woman is entitled to up to £500 each. There is a 6% service charge on this loan. The loan can be repaid over a period of up to a year. So if a person borrowed the maximum of £500, and repaid over the course of a year, she would repay £530, which is approximately £10 per week (or £20 a fortnight). The first two women to take their loans must start repaying immediately. After 2 months of regular repayments, the next two women can apply for their loans. This process continues until all the women in the group have their loans. Once a loan has been fully repaid, the client can take out a second loan of up to double the initial amount. This time, the service charge is 10%. A third loan is available of the same amount. The borrowing circle relies on the women’s commitment to the group and each other. The women in the group are there to enhance each other’s ideas and business potential. The stronger the group, the more successful the businesses! Street Cred clients are invited to attend bi-monthly events which are specifically designed to accelerate their enterprises. These events cover both theoretical and practical issues of running a successful business. For further information or to join please contact Street Cred on 020 7729 9267. top Frequently Asked Questions How can I start up a business with only £500? If you want to start up a small business from home for example, catering, hairdressing or dress-making - you can use the £500 to buy basic materials which you might need to get started. This might include a sewing machine, fabrics, a computer, or cooking ingredients. Or you could use it for publicity - leaflets, business cards, posters or adverts in local newspaper. Once you have repaid this loan, you can then take out another loan of up to double the initial amount. However, if you want to open a café, restaurant or shop, etc., we can tell you about organisations which give larger loans. *Do I have to pay interest?* You do not pay interest. You do have to pay an annual service charge. This serves to cover our costs. It is 6% on the first loan and 10% on the second loan. *How soon do I have to start repaying the loan?* You must start repaying straight away. You may repay over the course of a year. We will agree the amount and frequency of repayments before giving you the loan. Why do I have to start repaying straight away? We need the first two women to make regular repayments for two months before we can give out any more loans in the group. This is our “security” on the loan: it reassures us that they will continue to repay the whole loan. *How can I start repaying straight away?* We won’t give you a loan until we are confident that you have some clients lined up, guaranteeing you some income from the moment you take the loan. *What happens if I can’t repay for some reason?* We understand that unexpected events can happen, and so we try to be flexible if on occasion you have problems repaying. The most important point is that you TELL US if you find yourself in this situation. We can renegotiate your repayments if necessary. If it’s a case of your business not bringing in enough money, the other women in the group will help you to get things moving again (for example, by helping you with advertising). Above all, don’t avoid the development worker or the group meetings if you can’t repay, as this will make things worse. We are there to help you! However, if you continue to not repay and do not negotiate repayments with Street Cred, we will be forced to pursue our default procedure. *Can I spend my loan however I like?* You must spend your loan on your business. This might include materials, publicity, travel costs necessary to your business, etc. You should keep receipts and report back to the group on what you’ve spent your loan on. *What if I’m on benefits? How much am I allowed to earn?* If you are on benefits, there will probably be a weekly limit on how much you are allowed to earn. You should check with an independent benefits advisor as to how much your limit is (for example, try the Citizens’ Advice Bureau or local community groups). Ask the benefits advisor about the New Deal (self-employment option), in particular: the six-month test-trading period the dual account system. If he or she is not familiar with any of the above, ask him/her to check the benefits manual. It is important that you consult an independent advisor to clarify your position, before you inform your advisor at the Job Centre. I don’t live in East London / I’m a man: can Street Cred help me start up a business? We can inform you about other organisations which cater for other boroughs / for men. top Who's who..... If you want to get involved or to find out more about Street Cred, please contact the relevant person: Claire Caffrey: Street Cred Coordinator and Development Worker for Newham and Tower Hamlets (full time) Dinar Ali: Development Worker for Tower Hamlets and Waltham Forest (full time) Hiba Ali: Development Worker for Tower Hamlets (part-time) Myriam Bartu: Development Worker for Newham (full time) Rachel Benchekroun: Development Worker for Hackney and Waltham Forest (full time) Naomi Casserly: Development Worker for Hackney (part time) AWE Sustainability Officer (full time) top