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Business Enterprise Fund’s Social Impact Credit Scoring System

Publication Good practices

Business Enterprise Fund is a not for profit business lending microfinance institution which uses creative finance to change communities for the better. It has been lending for 14 years and covers the whole of the north of England. They manage funds on behalf of others as well as using their own funds.

Overview of Good Practice

Business Enterprise Fund wanted to introduce a system that built upon its previous more subjective credit assessment process, which used more conventional forms of credit approval such as the CAMPARI system. However, the CAMPARI system was not always consistent and sometimes it resulted in bad decisions based upon the information provided by the investment manager. Business Enterprise Fund was therefore looking to remove the subjective elements of the credit assessment from the process and move it towards the objective approach that blended bot social impacts as a weighting in the score - so not just a quick decision by a computer.