We are developing a Credit Union for the Logistics Sector, which will provide a source of funding or a way of indirectly reducing the cost of training to businesses. Any financial surplus from the Logistics Credit Union will be channeled as bursaries for members to help pay for training. Importantly, in a sector with a larger proportion of people who struggle with reading and writing, money can be drawn by members to help improve basic skills. As the Credit Union develops momentum, we hope that it can offer financing to employer members for vehicle, plant and machinery leasing at preferential rates, all with the ethical lending ethos of a Credit Union.

1. Logistics Guild
Credit Union

2. 03
The Logistics
Guild Credit Union
is a not-forprofit, financial
cooperative owned
and run by its
members.
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.
Dr Ross Moloney
CEO Skills for Logistics

3. 05
What is the
Proposal?
You are being
invited to
become one of
the key entities
sponsoring
the LGCU.
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.
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).
For more information visit
logisticsguild.com
Employees can borrow
loans from the Credit
Union at rates below
those offered by banks,
building societies and
other doorstep lenders.
Loans are unsecured.
The UK Government (Department
for Business, Innovation and
Skills through the UK Commission
for Employment and Skills) has
already committed £1.29m and major
logistics corporates are proposing
£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.

4. 06
What social
and
educational
problems
is the proposal
addressing?
07
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 and doorstep
lenders 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.
For employers, including
LGCU loans in their training
programme could:
Logistics in the UK
employs over 2 million
people but many
of these people are
young and low paid.
• Increase the number of
apprentices (18+ yrs) where
there is low or no
Government funding.
• Alleviate the pressure on training
budgets and increase the scope
of what can be offered.
What employer
concerns does
the LGCU
address?
• Increase productivity where
research shows productivity gains
outstrip wage increases.
• Improve staff retention. If staff
leave the employer, they take
the loan with them.
• Help improve job satisfaction,
lowering rates of absenteeism
and recruitment costs.
Increased training activity provides
more skilled workers for the future
and improves the reputation of
your company.
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.
Employers may want to expand
their social inclusion strategy to
help the long term unemployed and
address high youth unemployment.
Larger employers may wish to offer
development opportunities to their
subcontractors where individuals
in these companies could take out
training loans.

5. 09
What can loans
be used for?
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:
• Pre-employment training.
• LGVs: Practical and theory tests.
Loans can be made for specific
training in logistics or any work
related field such as HR, accountancy,
finance, procurement, Health and
Safety etc.
Loans can also be offered for
everyday items such as buying a car
to get to work, washing machines,
school uniforms or family holidays.
Importantly, loans can be made
where there is no Government
funding and where banks are
reluctant to lend.
• Logistics Certificates and Diplomas.
• 2nd degrees and MBAs in Logistics
Supply Chain, International Trade
and Transportation.
• Shipping Certificates and Diplomas.
• 2nd degrees in Maritime Business,
Ship & Port Management & the
Environment & Shipping Logistics.
• CIPS Procurement and Supply
Chain Qualifications.
• Operations and Business
Management.
• Humanitarian Logistics.
* As part of an approved scheme
• The LGCU will work with a broad
range of training providers and
professional bodies.
Why Credit
Unions are fairer
than Banks.
Products have no arrangement
fees or early settlement charges.
Life cover to repay loans is
offered at no extra cost.
CUs actively encourage saving
and offer information on how to
budget finances.
CUs are more reasonable in their
negotiations with individuals when
they get into arrears, looking to
help them resolve their financial
difficulties rather than seeing them
as a profit opportunity.
The LGCU’s products
are fairer to the
employees than
those of a bank or
doorstep lender.

6. 10
11
What is being
asked of the
Sponsors?
Why the
Sector needs a
Credit Union.
We are asking prospective
Sponsors to provide one or
more of the following:
Make a gift to help with the
LGCU’s capitalisation.
Market research* tells us:
60% of the workforce are under the
age of 34 and 57% do not own their
own homes.
65% of regular savers and 71% of
irregular savers would consider
opening a savings account with the
LGCU, subject to competitive rates.
30% of employees expect to take
out a loan in the next 12 months
for up to £2,000 with repayments
over 3 years.
Provide subordinated debt or equity
where you would receive a market
return on your investment.
Typically, the Sector
operates on low
margins. To develop
and fully realise career
potential, the LGCU can
offer real benefits and
opportunities.
Provide senior loans or deposits
at competitive market rates to fund
the LGCU.
Permit access to their employees
and/or their subcontractors to
promote the LGCU and it’s benefits.
Allow payroll deduction for your
own employees who wish to take
out loans.
* Survey by Logistiqa on 30 logistics companies.
For more information visit
logisticsguild.com

7. 12
The UK
government is
sponsoring the
initiative and
each sponsor
would be a
partner with
them in the
project.
Founder Members
Regulatory Disclaimer
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).
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.
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, reporting to SfL
and the UKCES plus supervision by
the regulatory authorities.
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.
For more information visit
logisticsguild.com
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.

8. 14
How a Credit Union
will benefit Logistic
Guild Members.
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 includes;
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 not-for-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.
die the loan will be paid off in full
and not represent a problem for
your family.
What is the philosophy of a
Credit Union?
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.
What amounts can people borrow
and on what terms?
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 doorstep lenders for
amounts of £500.
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
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.
What other products will the Credit
Union offer?
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?
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 clientbase which may be on the move and
does not want an inflexible branchbased structure. Given the projected
geographical spread of members
across the UK, this is the most
practical arrangement.
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
payrolls 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.

9. For more information visit
logisticsguild.com
01908 313360
email Richard Bell
richard.bell@skillsforlogistics.org