What is a Community Interest Company?
A community interest company is similar to a charity in that it is set up to benefit the community; however, a community interest company is expected to make a profit from the goods or services it sells. The profits a community interest company makes are put back into the company, as opposed to going to private shareholders.
Why are we telling you this? Well, Fair for You is a legitimate community interest company that tries to make credit and loan options available to as many people as possible, regardless of their financial background.
Simply put, we’re a not-for-profit organisation and proud of it.
To help you understand more about what we do and how we’re run, here’s everything you need to know about our community interest company.
What is a not-for-profit organisation/business?
A not-for-profit organisation does not exist to make money for shareholders or owners; instead, these businesses donate or reinvest the money.
By definition, a community interest company is a not-for-profit organisation, so although we do make money, this revenue is used to continue helping less well-off people.
As a community interest company, we’re not exempt from corporation tax and are required to pay tax on the money we make too, so it’s not just our customers who benefit from the money we make.
How does Fair for You make money?
We’re totally owned by the Fair Credit Charity, but we receive funding from some of the UK’s largest social enterprises and charities, including:
As well as being supported by these organisations, we also charge interest on our loans. To ensure fairness, we keep our interest rates as low as possible and don’t judge you solely by your credit score, even if you’ve needed help to repay debts in the past. Additionally, whenever you shop with an approved retailer using our finance options, they pay a contribution to keep your costs as low as possible.
How does Fair for You spend its profits?
As a not-for-profit organisation, every penny we make goes back into the business. This includes paying wages, for our premises, and ensuring we can continue to support those who need it most.
As a legitimate community interest company, Fair for You is also required to pay corporation tax on all of our profits and income too.
These loans also help to fund new innovations like the GPC Exclusive Shopping Card, and in partnership with Iceland, our interest-free scheme, the Food Club Card. You can read more about the Food Club Card in our Everything You Need to Know about the Iceland Food Club Loan from Fair for You below: