An option for your "funding mix"?

Loan finance can seem like a new and somewhat scary idea, but it might suit 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:

Charity Bank

• 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

Unity Trust Bank plc

• Traditional banking services
• Property Development Funding
• Fundraising Bridging Loan
• Community Asset Transfer Loan
• Social Mortgage
• Rent to Buy
• Grant Bridging Overdraft