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

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