FEES AND COSTS

Sometimes, at outset and ongoing, a prospective client organisation - a credit union or a proposed one – will be disheartened by the

• Amount of money required to provide the start up capital £10,000-£50,000 dependent on size – a legislative requirement
• Physical resources – premises/computerisation, etc;
• Amount of human resources to be mobilised - people to do the necessary tasks;
• Amount of initial and ongoing costs – money available to run the business.

Don’t be downcast!   To start a new or revitalise an existing credit union, it is not necessary to access “hundreds of thousands of pounds” to achieve the second or third item above, or to provide money to meet the early demand for loans by owner-members that may be more than the credit union’s aggregate share deposits (total savings).

To assist you and any colleagues, it is crucial for me to learn your current situation, needs and aspirations at outset, so I can give you the appropriate information and point you in the right direction.

It is possible that this Company is unique in that it believes there is no point in quoting fees and costs to perform any task, be it delivering necessary learning, assisting in drafting a Strategic Business Plan, if these are simply not affordable at that time.

I will provide information about proven methods (used successfully) of raising the money yourselves, how to source the resources (physical and human resources), including galvanising your community to assist.

FEES AND COSTS - OPEN AND FAIR!

The principle adopted is to charge fees and costs only for time spent on performing specific tasks. There are valid reasons for this to protect the interests of all parties in any transaction.

1. Fees and costs included when entering into a fixed term contract can be wasteful for the customer if the outcomes are delivered by the Company, before the time specified and within the contracted budget.
2. The reverse also applies if there is an over-run of the Company’s agreed attendance and cost base
3. Sometimes an assignment can be delivered in a shorter time than envisaged at outset. This can be determined by the keenness of the attendees and their desire to become self-sufficient in credit union matters. This is a positive result! The adverse can occur when it becomes apparent that it would be unwise to continue with the credit union project. To be both fair to and candid with any organisation engaging the Company, flexibility is given to both parties to discontinue any assignment at the end of a pre-arranged meeting as noted above.
4. A reciprocal understanding will always be in place and any time a customer reaches an opinion after the closure of a delivered session that the services of the Company are no longer required, after receipt of the contractual payment of all fees and costs outstanding for the delivery of all educational sessions to date, then its services will be withdrawn without rancour. It will of course continue to provide “general information” over the telephone, as this service is open to all credit unions and those with an interest in them.
5. This enables a client organisation “you” - a proposed credit union or an existing one - to become self sufficient in management, physical resources and viable financially at start-up and ongoing as quickly as possible.

From this you will see that fees and costs are only incurred for tasks actually delivered, undertaken and performed and not for doing anything else - such as charging for obtaining grant funding, e.g. writing a “Feasibility Report” to be submitted to funding or supporting bodies with the hope of a grant. If this is not successful, the fee paid (often quite large) has been spent regardless.

As a matter of principle, the Company will not bid for or undertake this type of work itself or on behalf of other organisations. It could well be the Company is unique in this approach to its customers. It is my belief that applying for grants is unnecessary, undermining “your” independence and often comes with conditions that have little to do with the setting up of a viable community, cooperatively owned, financial services business

SAMPLE TARIFF ITEMS - ESTABLISHMENT

As stated above, at the initial stages, a client organisation will discuss with me methods to be used to raise funds to cover initial start-up expenses. Figures are not quoted in this Tariff as flexibility to suit “your” needs is one of my key methods to assisting in the development of new and existing credit unions and a pragmatic approach will be taken towards the funding of my services.

• A composite fee agreed in advance to undertake a particular project This is to assist those organisations with limited funds available. Part of the fee agreed will be a retainer paid in advance.
• Undertaking desktop research
• Writing reports
• Producing texts of the above
• Daily rate for any of the above, a basic 8 hour working day with pro rata increases agreed in advance. Part of this fee will be a retainer paid in advance.
• Capacity building exercises and attending at meetings and conferences. Basic 8 hours with a marginal increase for a longer day or an hourly rate charged to the nearest quarter
• Travel and subsistence at cost. That will be standard rail fare, buses, taxis, hotels (room ensuite) and meals

SAMPLE TARIFF ITEMS - DEVELOPMENT AND EDUCATION

The Financial Industry Regulators for credit unions make it compulsory that all of those serving at senior level in the credit union, responsible for its care, are “fit and proper” persons, “approved” by it and educated to each task required to run a credit union.

It should be noted that most consultancies delivering education and development programmes to credit union groups do so over a four to six hour tutorial day. I always prefer a minimum eight hour day as tutorial is combined with execution, that is “learning, then doing” with attendees acclimatised to working in a pressurised real business environment.

The number of days required for delivering a full programme of education and development to a new credit union client group will depend upon the number of attendees, attitude towards and absorption of learning, dynamic of the group (including its stamina!) and budgetary considerations. The Company insists upon holding at least one in-depth meeting with the organisation commissioning the endeavour and those undertaking the learning process before the commencement of the assignment. As stated previously, fees charged for this are based on individual situations.

• Drafting and delivering education formats for up to 20 delegates for a basic eight hour tutorial day (production costs to be agreed) - per day. This fee can be reduced for up to 15 delegates. By prior arrangement, there can be a longer working day with an increase to the daily rate.
• Delivery of the above on a residential basis, giving an increase in the number of hours in the tutorial and learning day, but a reduction in the delivery time and an agreed proportionate increase in the daily rate.

As noted above, sometimes an assignment can be delivered in less time than originally expected, or it can be that it is not feasible to carry on with the credit union project, so either of us can discontinue the project with sufficient notice, following a meeting to discuss relevant issues.

I look forward to receiving your enquiries, and to discussing any of the issues covered here regarding my individual approach to fees and costs. contact