Funding

You’ve got an idea, you’ve researched it, great. Now how do you get it off the ground? Any enterprise needs funding in the initial stages and social enterprises are no different. There are a variety of ways that you can fund your social enterprise including utilising the funding that UMIP can provide. To find out about the 4 main approaches to funding your social enterprise.

Secured loan
Use your tangible assets to raise funds


Standby/underwriting facility
Secure credit to use if / when income drops


Overdraft facility
Secure agreed credit when your account reaches zero


Bridging loan
Finance to cover short-term cashflow shortfalls


Pre-funding of fundraising
Loans which help meet short-term fundraising targets


Working capital facility
Finance to support dips in cash flow


Grant
Finance which expects no financial return


Philanthropic capital
Used by foundations and philanthropists to create social benefits


Community investment
Selling shares to people in the community to create a co-operative enterprise
Venture philanthropy
High-engagement grant-making


Patient capital
Suitable for big social or environmental impact project


Growth/development capital
Finance to help an organisation or project grow


Equity investment
Finance from the sale of your shares


Quasi-equity/revenue participation
Combining some of the benefits of equity and debt


Community Development Finance Institutions (CDFIs)
Finance from small social investment providers


Social impact bonds
Investment from the private sector


Charitable bonds
Using long-term debt to finance growth