Loan finance
A suitable addition to your "funding mix"?
Loans can enable better financial planning and are therefore a realistic tool to be considered. Whilst not suitable for every group, a loan could be the right option at a particular time in your development. You might need a large sum of money to bridge a gap between receiving grants, or to enable projects to move forward during the time taken to raise capital from more traditional fundraising methods. A small organisation might need help with cash-flow if a funder can only release funds on completion of the next stage of a project.
Loan finance can help to:
- provide cash at a crucial point in your project or organisation's development
- encourage you to plan ahead beyond grant funding
- promote business planning and organisational development
- provide money to use as you wish, not limited by funding constraints
- vary your portfolio of financial resources, leading to greater sustainability
Examples of loan finance providers:
- Short term bridging loans against delayed grants or other identified income such as pre-finance covenanted or contracted income
- Working capital loans
- Loans for building purchase and refurbishment
- “Final brick” loans, which enable you to get on with the project after most of the funds have been raised
- Loans for new developments or for income generation
- Loans to help you build reserves
- Standby commitments where you need to evidence matched funding
- Underwriting to kick start or underpin a fund-raising programme
- Guarantees or performance bonds
- Traditional banking services
- Property Development Funding
- Fundraising Bridging Loan
- Community Asset Transfer Loan
- Social Mortgage
- Rent to Buy
- Grant Bridging Overdraft
