Loans give women a business hand-up

By MONIQUE DEVEREUX

A year or so ago Louise Lockie took the brave step of starting her own business. With a son about to head to school, the Christchurch mother wanted to get off the DPB and do something for herself.

Now her business - making ear candles - has expanded so much she is selling her wares through 70 health stores across the country. Soon she hopes to employ another person.

None of it would have happened without a helping hand from the Angel Fund, a Christchurch trust that lends up to $500 interest free.

The trust is linked to 18 other small loan funds across the country that are set up to help women.

In Auckland a trust runs the Auckland Women's Loan Fund on a similar basis, except it can offer up to $1000 interest free.

Angel Fund co-ordinator Sandra Nowland-Foreman says the aim is to plug the gap that other agencies cannot and to help give women that confidence to start something they might not otherwise have been able to.

Borrowers need no business plan, collateral or even much proof that the money can be paid back.

Applicants are assessed thoroughly to ensure that they do not qualify for help from Winz or any other state funding. Two character references must be given - which are checked - and the trust has no qualms about turning down those who do not seem trustworthy.

"We go by gut instinct a lot of the time. It's often a matter of trust for us but also a matter of pride for the women," says Nowland-Foreman.

Repayments are made at $10 a week. But not all loans have been paid back and debt collectors have been called in several times.

Most women not only pay back the cash but also go on to have some success in their chosen business.

Since it was set up the Angel Fund has given out about 180 loans. At the moment 35 are outstanding.

About 75 per cent of the women who borrow from the fund are on the DPB, and 43 per cent are Maori.

Nowland-Foreman says for those who find success there are other agencies with large fund pools to help with the next step, for example leasing a shop or buying shop fittings.

"And we help them with advice on how to handle that stage too.

"It's great to watch the progress, to be the first step towards something that really makes a positive difference for someone else."

Lockie is a prime example. She needed $400 to buy the ingredients for the ear candles, a product used by various specialists in the health sector to treat ear infections, glue ear and tinnitus.

As well as the 70 health stores on her books, Lockie's products have recently been introduced to several health spas.

She is now hoping to break into the diving market, as the candles can be used to clear ears underwater.

In Auckland the loan fund has recently been resurrected by businesswomen Pleasance Hansen, Bronwyn Gray and Marilyn Sainty.

They can offer higher loans thanks to a grant from the Sky City Community Trust and at the moment have about a dozen women on their books.

They also have success stories.

One solo mother was recently able to borrow the money to turn an unused garden shed into a workshop in which to make jewellery to sell, which she is doing successfully.

The borrowing process is similar to the Angel Trust. Although there is a formal process, the women are essentially assessed on "gut instinct" at a face-to-face meeting.

Loans are ideally repaid within a year but the trust is prepared to be flexible. Only a couple of bad debts have had to be written off.

Hansen says the main requirement of the women who borrow is that they follow in the philosophy of the fund - women helping women.

But the lure of a $1000 loan does not appeal only to women. Hansen says several men have "tried it on", asking for loans supposedly on behalf of wives, sisters or grandmothers.

Donations like that from Sky City go a long way but both the Auckland Women's Loan Fund and Christchurch Angel Fund are always grateful for financial assistance.

That kind of assistance means the Angel Trust can employ three part-time staff, who each work a few hours of one or two days a week. The Auckland trust aims to be able to employ a part-time administrator next year.

* Auckland Women's Loan Fund: (09) 360-6539; Angel Fund, Christchurch: (03) 366-9978