One Agency or Several

Home Prospective Providers Setting up NILS One Agency or Several
One agency alone or several together?
PDF Print E-mail
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 model is used successfully in Western Australia, Tasmania and in several regional areas of NSW.

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.
Last Updated on Friday, 02 April 2010 07:42