After the banks have gone – the ‘Bank of Frome’ gathers momentum

What should Frome do about the planned exodus of banks from the town? That was one of the topics under discussion at a meeting of local business people with a follow up meeting planned for Thursday 4th May.

The meeting, attended by 15 people, was hosted by Edventure and the Frome Chamber of Commerce.

“There were three main concerns of the business community – loans for micro businesses, availability of advice, and cash exchange, said Edventure. “With banks getting increasingly risk averse, how can small businesses find loans, investors and other forms of financial support and where can they go for affordable advice?

“There was also much agreement in the meeting that cash is not a thing of the past – businesses need to obtain cash and cash it in.”

Steve Macarthur, director of the Cheese and Grain says that cash is very much still very relevant. “People come for a night out with cash in their pockets to limit their spending and drinking,” he explains.

Tina Gaisford-Waller, manager of Winstone’s Hunting Raven Books, concurs. She explained how she is worried about how she will get hold of change and pay cash in with the banks poised to leave the town. “Maybe it could be possible to set up a cash exchange once a week, maybe on market day?” she said.

A spokesperson for Edventure continued, “Many other ideas were discussed at the meeting, including setting up a finance hub – could Frome find space to set up a hub where, initially, maybe half a day a week, small-medium sized business owners could go for mentoring and free advice from professionals and seasoned business managers. Maybe if this took off, it could expand into something more permanent offering wider services, maybe one bank might come to offer transactions, maybe it could include a post office and of course coffee!

“Also discussed was the idea of a local fund offering loans – this is a really exciting idea, and is part of a circular economy model too. Could we set up a fund to which bigger businesses, entrepreneurs and people with cash to spare, could contribute some money that could be lent or granted to small and aspiring businesses? This would need setting up properly, would need a panel to access loan and grant requests and agree terms, but this could be really exciting. As a pilot, we could start with a small fund and offer small loans, but it is worth exploring further. We might need a finance partner to satisfy regulations.

“We also looked at an Angels Den – an idea that connects the need for loans with the need for professional support! Candidates would be offered training to work up and present their business ideas and bid for funds from a panel. The focus would be less about ideas being sexy, but more on them being sound and supportive of the town’s future.

“All this may be very far-fetched and beyond the reach of a small town, but if anywhere can do this, or some of this, Frome can!

“If you have ideas, the group is holding a second meeting on Thursday 4th May, from 6pm to 7.30pm at the Cheese and Grain. You can sign up by visiting: https://bit.ly/43QK9ZC or by searching ‘After the banks have gone – the “Bank of Frome” gathers momentum’ on Eventbrite

For more information contact Jean Boulton via hello@edventurefrome.org.