Loan finance

The availability and accessibility of loan finance to voluntary and community organisations has increased considerably in recent years. Loans are used where large amounts of money are needed to purchase property, land or equipment, or to establish new projects and ventures. Alternatively, as organisations develop new income streams, such as earning or trading, they may also require significant investment to create new services. Wherever investment is needed to drive organisational growth loan finance may be a viable option.

Loan finance is not an income stream but a financial enabling tool. It is not a replacement for grants but is simply seen as another way to finance an organisation. Loans can benefit the sector in many different ways but are not appropriate for everyone. Loan finance should only be considered if it will benefit your organisation and appropriate structures and systems are in place to repay it.

This section is designed for those considering loans by introducing the concept of loan finance, are loans right for you, their benefits and signposts to further information.