Ignition has acted for Salad Money, an award winning social impact FinTech, on its latest £5m five year investment by Fair4All Finance.
This is the third significant FinTech investment from Fair4All Finance’s Affordable Credit Scale Up Programme, designed to increase the supply of fair and affordable credit for people in financially vulnerable circumstances.
Salad offers two complementary products, both underpinned by innovative, proprietary technology. They use Open Banking data, rather than traditional credit scores, to lend responsibly to public sector workers that might otherwise be reliant on unaffordable payday loans. Loans are repaid either via Salary Deduction, through partnerships with employers or by Direct Debit.
Salad also offers ‘Salad Money Mind’, a free online tool that promotes financial resilience through replaying spending behaviours and directing users to targeted sources of support.
Salad, alongside all the social purpose lenders Fair4All Finance supports, has signed up to the Affordable Credit Code of Good Practice – ensuring that customers are treated fairly.
This investment will be used in conjunction with Salad’s commercial funding. With this long term support, Salad will expand its offering and further reduce the cost of credit for its customers.
I wish to thank Ignition Law for an outstanding service at excellent value for money. Helen and Fiona’s advice was well-considered and highly responsive
Phillip Hyett, Finance Director, Salad
We are impressed by Salad’s innovative approach to helping customers in vulnerable financial circumstances. Salad has grown quickly since it started lending in late 2019, with a strong focus on supporting lower paid public sector workers with loans of up to £1000 and the rollout of its free financial education tool. Currently, three quarters of their borrowers are NHS workers in the lowest 40% of incomes and half of their borrowers have dependent children. We see Salad as a sustainable alternative to high-cost credit and believe that with our support they have great potential to scale their affordable lending.
Sacha Romanovitch OBE, CEO of Fair4All Finance
Since launch we have provided fast, fair and truly affordable loans to over six thousand lower paid public sector workers across the UK. Harnessing Open Banking data is a far superior method to evidence affordability for customers with poor or impaired credit scores and this is reflected in our outstanding performance to date. Fair4All Finance share our aspiration of developing a sustainable mid-cost credit market and we are delighted to be working with them.
Tim Rooney, CEO of Salad
Salad is a for-profit social enterprise and the first truly responsible workforce lender, they’re proud to be different.
This runs right to the heart of how they operate as a business. Unlike most workforce lenders their social objectives come top of the list. Fairness, equality and providing affordable credit for NHS and public sector workers outweighs the need to make a profit every time.
About Fair4All Finance
Fair4All Finance is a not-for-profit organisation founded in early 2019 to improve the financial wellbeing of people in vulnerable circumstances by increasing access to fair, affordable and appropriate financial products and services. You can find their full strategy here.
For any queries or further information please contact Helen Gerrard.
Risk Warning: As with any investment product there are risks. Part or all of your original invested capital may be at risk and any return on your investment depends on the success of the project invested in. You should be prepared to hold Abundance investments for their full term. Abundance investments may not be readily realisable (and their value can rise or fall). They may be secured or unsecured, and where they are secured this does not ensure repayment. Estimated rates of return can be variable and estimates are no guarantee of actual return. Specific risks will apply in relation to each product. Consider all risks before investing and read the Offer Document for each FinTech investment.