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The secondary market operates as a resale market for loans, as opposed to a primary market in which loans are originated by lenders. In the secondary market, those who hold loans—banks, credit unions, microfinance institutions, community development finance institutions, and similar institutions—try to sell them to investors. The purchaser gets future cash flow from the loan, and there is often a guarantee from the seller or a third party to protect against future defaults by the original borrower. The primary lender is then recapitalized to make more loans to the schools, clinics, affordable housing, or small businesses that promote their social objectives. There is great potential to use this actor to leverage the dollars that go to socially beneficial enterprises. But today it is small, in part because of the capital markets’ difficulties generally, but also because successful prototypes have been one-offs or require high amounts of subsidy to maintain.

This chapter deals with online financing models for energy projects based on small contributions collected from a large number of individual investors and, thereby, a new type of financing community. This alternative financing mechanism, commonly called ‘crowdfunding’, is based on open calls made through an Internet platform to a wide public for the purpose of financing pre-selected projects. Energy projects have recently become reliant on crowdfunding platforms, due to the financial needs and interests created by the energy transitions in several European countries. It is also related to developers’ need to get local acceptance for their projects, and the desire on the part of the local communities to have a say in the use of their territory for energy generation purposes. As a result, crowdfunding of energy projects in Europe has mainly benefited renewable energy sources, but also energy efficiency, insulation works, energy infrastructures, and energy supply projects.

Inspired by a strong sense of social mission, credit unions in London, as elsewhere in Great Britain, have a long commitment to serving people on low-incomes. Recognised by the UK Government as key players in providing financial services to those marginalised by mainstream financial providers, credit unions have received significant political support and public financial investment to expand their services in low-income communities. This has been particularly important in times of austerity and hardship and of change to the welfare benefits systems. This chapter focuses on the historic development of credit unions in London, and explores how they have endeavoured to resolve the tension inherent in remaining true to their social and co-operative values and at the same time in ensuring their economic stability and independence. It discusses the background of credit unions in the capital, the challenges they have faced over the years and how they are endeavouring to reform as professional financial co-operatives serving a wide and diverse membership. East London Credit Union (ELCU) was founded by local volunteers inspired and motivated by their Christian faith to make a difference in the local community. The chapter reflects on ELCU’s mission and social commitment to assist people through hard times and the way in which has endeavoured to tackle austerity through business success.