NILS® Info for Community Groups One agency or several?

One agency alone or several together?

There are two options for setting up a NILS®, both based on the Good Shepherd model.

One agency

The original way is for one agency to run all aspects of a NILS®.  The one agency runs the entire process, from client interviews to loan allocation and book-keeping.  If the agency has several offices or an outreach service, it may cover several locations. The NILS® would also get referrals from other agencies. 

Several agencies working together

Another option is for several agencies to set up a NILS® together.   Each agency does client interviews.  However, the back-office administrative functions are centralised in one office.  This includes formal loan approval, monitoring repayments, banking and accounting.  The scheme is overseen by a committee with representatives from the agencies involved.

This is the model used successfully in Western Australia.  The NILS® Network has about 100 member agencies spread all across W.A.  The loan approval and accounting is done in an office in Perth. 

Tasmania also runs  a state-wide NILS® on this multi-agency model.

Advantages and Disadvantages of each option

For many agencies, the time and salary needed for the administrative aspects of a NILS® are a major barrier.  A networked model allows more organisations to be involved in NILS®, particularly for under-resourced organisations in deprived communities.

The multi-agency model avoids duplicated time in establishing and maintaining administrative policies and procedures.  This should reduce overheads per loan.

A multi-agency scheme may have a greater chance of attracting funding than a small, low profile agency.

A single agency scheme can develop its own lending criteria.  It may also allow workers to feel closer to the clients.