FOR most businesses, when demand outstrips supply, it is cause for celebration. At Shared Interest, however, it is merely an indication of what is wrong with the world economy and how much more positive work there is to be done by the firm.
For the first time in almost 20 years of trading, the Newcastle company’s entire pot of investor funds has been lent out to fair trade businesses in the developing world.
Meanwhile, it says the demand for lending is so great that there would still be a lengthy waiting list for loans even if it experienced a three-fold increase in its share capital.
This year has seen the company grow share capital by 10% on last year to £26m, and at the same time, lend out £33m to businesses such as farmers and artisans. The not-for-profit group aims to triple the amount it is able to lend in the next three to four years, while it continues to grow as the world’s only social lender purely focused on fair trade.
Throughout the economic downturn it has been boosted by an increasing amount of investment from those who have turned their back on the volatile banking sector.
But as economies in places such as Africa, Central and South America continue to be ravaged by the relentless fallout from the global financial crisis, the company has been met with overwhelming demand.