This article is part of a three-part Good Money Week series exploring how Ethex investments are driving positive change – from community-owned energy to fairer finance and building community wealth.
For many people in the UK, access to fair credit is far from guaranteed. Traditional banks often overlook those who need support most: families on low incomes, people locked out of mainstream credit, or community groups delivering vital services.
Too often, the only options available are expensive forms of borrowing that can trap people in debt.
A growing number of affordable finance initiatives are stepping in to provide fairer credit, giving people a way to manage essential costs without resorting to expensive borrowing.
Ordinary savers are also being given the chance to support this shift. Since its launch in 2013, Ethex has raised over £120 million for more than 200 organisations, spanning community energy, affordable housing, ethical finance and shared assets.
Its sister platform, Energise Africa, applies the same impact investing model overseas, enabling UK investors to fund solar projects that bring clean, affordable power to families in sub-Saharan Africa.
Why direct impact investing matters now more than ever
Why affordable finance matters
Around 14 million people in the UK have a “thin credit file” or history that makes borrowing difficult. When emergencies strike, like a broken fridge or high energy bill, many face the choice of going without or taking on high-cost loans. Affordable finance offers an alternative: credit that is fair, flexible and designed to support people rather than exploit them.
What’s open now
Fair For You, a social enterprise that provides low-cost loans for essential household items. Instead of pushing families into costly rent-to-own schemes, it offers affordable credit with flexible repayment terms.
Its latest bond, now open through Ethex, is IFISA-eligible with an eight per cent target return, aiming to expand access to fairer finance and reduce reliance on payday lending.
Source: Fair for you
Proven impact
Other recently funded initiatives illustrate the potential of affordable finance.
- Salad Money lends to NHS and public sector workers often overlooked by mainstream banks. Using open banking to assess affordability, it has issued more than £150 million in loans, saving customers an estimated £500 each compared with high-cost credit.
- The Fair Tax Foundation raised investment to expand its work encouraging responsible tax conduct. Its Fair Tax Mark recognises businesses committed to paying their fair share, helping to build transparency and accountability in the UK economy.
These projects show how impact-focused finance can provide alternatives to high-cost credit and profit-driven corporate models.
Why people are backing it
For many investors, the draw is the combination of measurable social impact with the potential for a fair return. Their money doesn’t just circulate within the system, it contributes directly to helping families avoid debt traps, supporting essential workers, and strengthening local economies.
As Ethex CEO Lisa Ashford says: “Finance can be part of the solution. By backing affordable finance, investors are helping to build systems that work for everyone, not just a few.”
Looking ahead
Affordable finance is not only about preventing hardship; it also plays a role in creating stability and opportunity. By backing ethical lenders and social enterprises, investors can support models that make finance more inclusive.
Just as community energy gives people a stake in the clean energy transition, and community assets put valued spaces into local hands, affordable finance helps ensure households and workers can access fairer opportunities. Together, they show how money can be directed to build stronger, more resilient communities.
This article is in partnership with Ethex.
