Club Loan Scheme

BRCA Articles

We are pleased to announce our Club loan scheme, check it out

But some Finance Background to Start: -

We’ve all had a very difficult 2020, the Association is no different and it’s been a very weird year all round. The Financial implications on us all have been trying, we’ve all had to manage things in very odd ways and sometimes with odd effects, again the Association is no different.

We will see a significant drop in turnover this year, coming from a small drop in membership numbers (given the pause in racing we’ve all suffered – not unexpected) and a huge drop in the entry fees we process on behalf of the sections. 

Our turnover last years was £311k, roughly 40% from memberships and the remainder from event entries (that we process at zero deduction for the sections). We had (at the end of the financial year, Sept 30) a reserve of £83k (with 2 months to go before the memberships start rolling in again) so while the figures are large we’re a large organisation and although the costs, per person, are small there’s a lot of us so the bills are big.

A reserve of circa 3 months turnover is appropriate and has proved itself to be just about right over the years.

However – and this is, despite what’s driven it, the Good Bit

The operating costs for the Association this year have been roughly the same as 2019, with memberships down but not drastically so  - the Association has continued to provide the same member services (while we appreciate that there was a 3 months gap where we’ve not been able to compete, that actually made the work the Association does Increase.. with Zero cost reduction anywhere else) so we’re in the fortunate position that while we might make a slight loss the fees won’t have to increase.

But because our turnover has dropped, as the entry fees have plummeted, the reserve will, for now, go further.

We don’t believe that funds should be here and not be used and we’ll certainly need them again when whatever the new normal comes around, but for now we have some funds we can use, and this is what we plan to do:-

Club Loan Scheme

The Association has always leant funds to Sections for their projects, in years gone by it would not be uncommon for there to be several section loans on the go at the same time, but times have moved on and with all the sections now having properly structured entry systems and most with a fair bit of equipment, sections needing financial support are almost none existent.

The Association has, until now, never leant funds to clubs directly, we think it’s time to change that, so: -

  • As of the 1st October Affiliated Clubs will be able to apply for an Interest Free Loan.
  • The (to start with) maximum loan value is £5,000 and the repayment period a maximum of 3 years.
  • The frequency of payment is to be variable within the term by mutual agreement to suit what the club does. (I.e. indoor clubs repayments in the winter, outdoor club in the summer.)
  • The general intent is for the funding to be for a physical item(s) but investment in facilities may be possible too – talk to us about this before sending anything in.
  • There will be a formal loan agreement between the Club and the Association.
  • The Club will need to have been established for a reasonable time, have demonstrable history and be operating successfully in accordance with normal club practice (i.e. we’ll expect to see that you’re holding club AGM’s, producing a set of accounts for your members and be able to afford the loan repayments)
  • Lastly, the Association will happily conduct a transaction directly with suppliers, on a Clubs behalf, for anything under this scheme.
  • All Clubs will be sent details towards the end of September, for now give this some thought, come up with questions and send them in via ‘Contact Us’ on brca.org

 

  

The available ‘Pot’ we anticipate being in the region of £30k to start with, but as things get rolling that may increase and as funds start being repaid, we’ll be able to add that back into the pot.  So be aware that, depending upon demand, we may not be able to service everybody instantly and projects may have to be prioritised.

As above, questions via ‘Contact Us’ and keep an eye on your club inbox towards the end of September.

Essential SSL