Loan Finance as part of the funding mix
Like any organisation, charities, social enterprises and voluntary groups need money to both exist and prosper. But often their focus is on survival rather than strategic development. They talk the language of grant applications rather than finance, or spend lots of time organising fundraising events, with no guarantee they’ll have an income in the future.
Other organisations, however, are not just surviving but thriving, because they are thinking with a different mindset about finance. They are developing strategies based on a ‘funding mix’ rather than solely looking at grants and gift-giving as the source of funds.
Borrowing is not always the solution. But it’s often the perceived risks, or lack of knowledge about it, that is the real barrier to accessing finance that can help transform an organisation’s ability to deliver.
The advantage of loan finance is that it can be borrowed long-term, allowing more time to plan and develop trading income streams. Even small charities, community organisations and social enterprises can, with the support of loan finance, leverage their funds more cleverly to ensure the smooth completion of their projects.