Skills for Logistics and The Logistics Guild is developing a Credit Union specifically for people who work in the UK Logistics Sector.

1. PRESENTATION
The Logistics Guild
Credit Union

3. 3
The Logistics Guild is developing a Credit Union specifically
for people who work in the UK Logistics Sector.
Every credit union has a membership test which determines who can become a member.
Being a part of the Logistics Guild, members will have the right to join the Logistics Guild
Credit Union and take advantage of its ethical product range including savings products,
ISAs, current accounts and loans.
Loans can be for personal training, learning and career development and other purposes.
The money deposited by savers helps provide fellow members with access to loans.
As a not-for-profit financial cooperative, the income made from the interest charged
on these loans pays savers interest and some surplus profit may be used to fund
educational bursaries.

4. 4
The credit union concept has the support of Skills for Logistics, the
UK government and leading employers within the logistics industry.
Logistics employees can access the credit union by being members of the Logistics Guild.
The Guild offers training and development programmes, member benefits (e.g. discounts at
retailers) as well as the chance to join the credit union. Guild membership is free.
Employees can borrow loans from the credit union at rates below those offered by
banks, building societies, Wonga and other doorstep lenders. Loans are unsecured.
The Logistics Guild Credit Union’s (LGCU) lending rates are lower because it is a not-for-profit,
ethical lender which is owned by its members (corporate and individual).
The UK Government (Department of Business, Innovation and Skills through the UK
Commission for Education and Skills) has already committed £1.29m and major logistics
corporates have provided £600,000 of capital. THE LGCU will be regulated by the FCA/PRA
and retail deposits will be protected by the FSCS scheme up to £85,000.

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Logistics in the UK employs over 2 million people but many of
these people are young and low paid.
Government research shows that literacy and numeracy is low in the sector.
The Government is keen to promote credit unions as research shows too many people on low
incomes are paying too much in bank charges.
Moreover, banks and building societies have largely withdrawn from personal lending leaving
many people dependent upon pay day loan companies, doorstep lenders and companies like
Wonga.com who charge between 1,500 and 4,000% p.a.
Whilst loans may be used for any purpose, the LGCU will be promoting their use for
training courses, helping workers to improve their career prospects, raise their self esteem
and take responsibility for improving their career outlook.

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Increased training activity provides more
skilled workers for the future and improves
the reputation of your company.
For employers, including LGCU
loans in their training programme
could:
o
Increase the number of apprentices (18+ yrs)
where there is low or no Government funding.
o
Alleviate the pressure on training budgets and
increase the scope of what can be offered.
o
Improve staff retention. If staff leave the
employer, they take the loan with them.
o
Help improve job satisfaction, lowering rates of
absenteeism and recruitment costs.
An employer may have a balance sheet
cap on what it can lend on employee loans
but the LGCU has no cap on the number
of loans lent.
o
Employers may want to expand their
social inclusion strategy to help the
long term unemployed and address
high youth unemployment.
o
Larger employers may wish to offer
development opportunities to their subcontractors
where individuals in these companies could take
out training loans.
Increase productivity where research shows
productivity gains outstrip wage increases.
o
o

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LGCU loans can be made for
pre-employment training* or to
apprentices or employees looking to
upskill and develop their careers.
Specific logistics qualifications such as:
Importantly, loans can be made where
there is no Government funding and
where banks are reluctant to lend.
*As part of an approved scheme
o
LGVs: Practical and theory tests.
Logistics Certificates and Diplomas.
o
2nd degrees and MBAs in Logistics Supply
Chain, International Trade and Transportation.
o
Shipping Certificates and Diplomas.
o
2nd degrees in Maritime Business, Ship &
Port Management and the Environment and
Shipping Logistics.
o
CIPS Procurement and Supply Chain Qualifications.
o
Operations and Business Management.
o
Loans can also be offered for everyday items
such as buying a car to get to work, washing
machines, school uniforms or family holidays.
Pre-employment training.
o
Loans can be made for specific training in
logistics or any work related field such as HR,
accountancy, finance, procurement, Health and
Safety etc.
o
Humanitarian Logistics
The LGCU will work with a broad range of
training providers and professional bodies
across Great Britain.

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The LGCU’s products are fairer to
the employees than those of a bank
or doorstep lender.
o
Products have no arrangement fees or early
settlement charges.
o
Life cover to repay loans is offered at no
extra cost.
o
CUs actively encourage saving and offer
information on how to budget finances
o
CUs are more reasonable in their
negotiations with individuals when they get
into arrears, looking to help them resolve their
financial difficulties rather than see them as
a profit opportunity.

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Typically, the Sector operates on low
margins. To develop and fully realise
career potential, the LGCU can offer
real benefits and opportunities.
Market research* tells us:
o
60% of the workforce are under the age of 34
and 57% do not own their own homes.
o
65% of regular savers and 71% of irregular
savers would consider opening a savings account
with the LGCU, subject to competitive rates.
o
30% of employees expect to take out a loan
in the next 12 months for up to £2,000 with
repayments over 3 years.
* Survey by Logistiqa on 30 logistics companies.

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We are asking prospective Sponsors to
provide one or more of the following:
o
Make a gift to help with the LGCU’s capitalisation.
o
Provide subordinated debt or equity where you
would receive a market return on your investment.
o
Provide senior loans or deposits at competitive
market rates to fund the LGCU.
o
Permit access to your employees and/or
your subcontractors to promote the LGCU
and it’s benefits.
o
Allow payroll deduction for your own employees
who wish to take out loans.

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As a founding member of the LGCU, a sponsor will enable its own
employees and those of its subcontractors to borrow funds for training
(and other purposes).
A sponsor will demonstrate social responsibility by supporting an important new initiative which
helps protect lower paid logistics workers from financial exploitation by high interest rate lenders
and improves access to education by creating bursaries.
Governance of the highest standard is ensured through professional credit union staff, an
industry board, monthly reviews and reporting to SfL and the UKCES and supervision by the
regulatory authorities.

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The content of this presentation is issued and approved by Promethion Limited
(“Promethion”) which is authorised and regulated by the Financial Conduct Authority
(the “FCA”) for the provision of investment advice to persons who can be categorised, in
accordance with the FCA’s rules, as “professional clients” and “eligible counter parties”.
The Firm does not provide investment services to retail clients and such persons should
not seek to use or rely on any information provided in this presentation.
The information contained herein does not constitute an offer to sell or the solicitation of any
offer to buy or sell securities and or any derivatives and may not be reproduced, further
distributed or published by any recipient without prior permission from Promethion.
The information and opinions contained in this presentation are for background purposes only
and do not purport to be full or complete. Nor does any content within this presentation
constitute investment advice. No representation, warranty, or undertaking, express or limited is
given as to the accuracy or completeness of the information or opinions contained in this
document by any of Promethion, its directors or employees and no liability is accepted by such
persons for the accuracy or completeness of any information or opinions.
Promethion is not registered as an investment advisor with the SEC and therefore this
document is neither directed at nor intended for US investors.

13. How a Credit Union will benefit
Logistic Guild Members

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Zoe Shaw, Managing Director of
Promethion Ltd, the company behind the
new Logistics Guild Credit Union (LGCU)
explains how the new credit union will
benefit Logistics Guild Members.
What will the main outcome of the LGCU be?
Like all credit unions it will be a not-for-profit financial cooperative
owned and controlled by its members. We hope that people will be able
to use the credit union to take out small loans to fund training, which will
help further their careers, as well as being able to take out loans for
household items.
What does this mean for businesses?
So far some major logistics employers and trade associations have pledged
to support the LGCU. Next we need to secure additional funding. Employers
are an integral part of moving forward and a lasting solution. Employers can
also be represented on the LGCU board which will protect the interests of
both employer and employee.
So who can use the LGCU?
To use the LGCU you will have to be either working or training within the
Logistics Sector. In addition to this you have to become a member of the
Logistics Guild. To register for this is absolutely free. Being a member of a
credit union for your industry ensures that your interests are specifically
looked after. The financial support offered by the LGCU include; better rates
for savings, loans and information on financial best practice, free life
insurance on loans, Christmas clubs and savings schemes. The philosophy
behind this credit union is to help people.
I hear that credit unions are “ethical lenders” what does this mean?
Credit Unions are controlled by law with respect to how much interest they
can charge (a maximum currently of 2 % per month). They often charge less
than this and lend at rates more competitive than credit cards and much less
than doorstep lenders and payday loan companies. As credit unions are notfor-profit organisations, any profit made by the credit union after expenses at
the end of their financial year may then be paid back to the members in the
form of an annual dividend on their savings.

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What is the philosophy of a Credit Union?
What amounts can people borrow and on what terms?
Credit unions believe in “people helping people” and are often run partly by
volunteers. When borrowers are unable to repay in a timely manner they try to
help people to get out of their debts rather than seeing people as a profit
opportunity. However, they are commercial and must make a profit and will
not lend without making credit checks.
We will be offering loans for between £1,500 and £5,000 for 3 years – there is
very little interest from clearers to lend these smaller amounts. We hope after
a few months to offer a payday loan product with very competitive terms in
comparison to entities such as Wonga.com for amounts of £500.
What other products will the credit union offer?
Why save with the LGCU?
Through convenient and simple payroll deduction you can make monthly or
one off lump sum deposits into savings accounts which have competitive
returns. These accounts offer instant access and online account
management. Any loan you take out will be protected by ‘free’ life insurance
so that if you die the loan will be paid off in full and not represent a problem for
your family.
The LGCU’s core product range will include regular savings products
(ordinary share accounts and ISASs) and unsecured loans. Other lending
products may subsequently be developed as the membership grows,
including pre-paid debit cards. We will also look to offer insurance and vehicle
finance in partnership with major providers in due course and offer a lottery to
raise money to train members.
Will there be a branch network?
Is my money protected in a Credit Union?
Yes it is protected by the Financial Services Compensation Scheme which
provides 100% protection for up to £85,000 shares per individual member or
junior’s savings just as with a UK bank or building society. The LGCU will be
regulated by the Prudential Regulatory Authority (“PRA”) , subject to Money
Laundering Regulations and registered under the Data Protection Act to
ensure members’ information is kept confidential.
The services will be delivered through a modern internet platform with
telephone and mobile banking options. It is believed this is appropriate for a
younger client-base which may be on the move and does not want an
inflexible branch-based structure. Given the projected geographical spread
of members across the UK this is the most practical arrangement.

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How will you actually market to our staff?
We will work with HR teams to design the best approach which suites their
organisation. This could include articles in in-house magazines, email contact,
banners on pay roles advertising the LGCU’s loans and trade and internet
advertising. In the longer term a designated in house contact person could
act as a focal point for members on a volunteer basis.
Why have I not heard much about credit unions before?
The UK is an under developed market for credit unions. By comparison,
in North America 45% of the US and Canadian population bank with credit
unions, 65% in Northern and Southern Ireland and 40% in Poland. The UK
Government is keen to encourage the growth of credit unions in the UK and is
working with the trade body, ABCUL, to promote saving and lending through
credit unions.