High street banks
Momentum Loans from BEF vs high street banks
£11500
5year(s)
£
£
Comparing finance from CDFIs against business loans from the average high street bank. Who’s giving SME owners in North East England a better deal?
Check your eligibilityCDFIs and high street banks side by side
| BEF NE Momentum Loan | High street bank small business loans | |
|---|---|---|
| Mission |
Mission
Social impact: Supporting underserved businesses, disadvantaged communities, and local economic growth.
|
Mission
Profit: Prioritising lower-risk borrowers and strong credit profiles.
|
| Eligibility criteria |
Eligibility criteria
More flexible. Willing to work with thin credit files, imperfect credit, startups, and businesses turned down elsewhere.
|
Eligibility criteria
Strict credit scoring, profitability requirements, collateral, and trading history. Often excludes early stage or higher risk businesses.
|
| Speed of approval |
Speed of approval
Typically faster. Aims to fund in 2-3 weeks depending on documentation. Human centred underwriting.
|
Speed of approval
Can be slower due to rigid processes, 2–6 weeks or more. Automated systems may reject early.
|
| Interest rates |
Interest rates
Slightly higher on average than high street banks but generally competitive. Designed to remain accessible.
|
Interest rates
Lower headline rates, but only for highly creditworthy borrowers. Variable rates common.
|
| Fees & transparency |
Fees & transparency
Clear, simple, transparent. Few hidden fees. Focus on borrower understanding.
|
Fees & transparency
More complex fee structures. Arrangement fees, early repayment charges, and variable interest may apply.
|
| Support & guidance |
Support & guidance
High-touch. Investment managers often able to signpost to other local support programmes.
|
Support & guidance
Minimal support beyond account management. Transactional relationship.
|
| Risk appetite |
Risk appetite
Designed to serve higher-risk or underserved sectors. Flexible, relationship based underwriting.
|
Risk appetite
Low risk appetite. Reliance on automated decisioning reduces approval for non-standard applicants.
|
| Community impact |
Community impact
Strong: loan capital recirculates into local communities, supporting jobs and inclusion.
|
Community impact
Limited: prioritises shareholder value over community outcomes.
|
| Loan size |
Loan size
Up to £250,000. Average loan size around £75,000.
|
Loan size
Wide range including larger amounts, but fewer approvals for smaller or early-stage loans.
|
| Decision basis |
Decision basis
Holistic view of the business: community impact, job protection, viability, cashflow story.
|
Decision basis
Primarily credit score, collateral, profitability, and automated risk models.
|
| Flexibility of terms |
Flexibility of terms
Structured repayments with the potential for capital repayment holidays during hard times.
|
Flexibility of terms
Standardised terms with less flexibility. Harder to negotiate or restructure.
|
CDFIs vs high street banks: FAQs
What’s the difference between a CDFI Momentum Loan and a high street bank loan?
Who is eligible for a CDFI loan in the North East?
Why might a small business be approved by a CDFI but declined by a bank?
How quickly can I get a decision and funding from a CDFI compared to a bank?
What interest rates and fees should I expect from a CDFI versus a high street bank?
Get funded in 4 steps
1.
Apply for funding
How much do you need to keep your business growing?
2.
Get expert support
Your Investment Manager shapes the right solution for you
3.
Receive your offer
A plain-language breakdown makes finance easy to grasp
4.
Receive your funding
You could get your working capital in as little as two weeks
Make sure you can always meet the demand.
Check your eligibilityMake the best choice for your business finance
CDFIs like BEF North East represent a fair, flexible alternative to high street banks. If you’ve been turned down for traditional finance, we could be able to help.