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When is it the right time for a charity to take on loan finance?

Charities are often reluctant to take on loan finance, preferring instead to rely on grants from trusts or individuals.

That’s understandable, but sometimes a loan is the best way of bridging a cash-flow gap or securing capital to invest in an organisation’s future. As a funding body specialising in the social sector, we find we’re often approached only after traditional fundraising avenues have failed or fallen short. This means many charities are unprepared for the loan application process and haven’t factored it into their plans.

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Posted in Social Investment

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