V. Financing your ideas
You may well need money to directly invest into a new enterprise idea and/or to cover someone’s time to help develop it.
There are various sources of finance that may be appropriate. Some of these can only be accessed by certain legal forms. The main sources are:
- Grants
- Donations
- Loans
- Loan/grant
- Equity
- Debentures
- Organisation’s own resources
Loans, equity and debentures should be considered where the enterprise shows an ability to manage these.
Investment readiness
An organisation will need to show that it is financially sound and has a good track record of effective financial management and perhaps assets against which money can be borrowed.
| Links and Tools | |
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‘Start your Social Enterprise' – Including a guide to finance for social enterprises. (Social Enterprise Coalition 2012) |
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‘Brief Guide to Loan Finance for Trustees’ What are the benefits of loan finance and can you take out a loan as a charity.(NCVO) |
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Community Shares website – using IPS or CIC company limited by shares models to gain equity income from community shareholders. Examples of where this has been used include Headingley Development Trust and Torrs Hydro hydro-electric power scheme. |
| Some of a number of grant and loan financers for the third sector, some also offering support | |
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Cultivating Enterprise programme supporting community organisations with a business idea. (Locality) |
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Adventure Capital Fund A grant/loan fund to support organisations that work for communities often favouring enterprising approach. |
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UnLtd grants and support for social entrepreneurs to help make their ideas a reality. |
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Futurebuilders Loans, often combined with grants and professional support, to third sector organisations that need investment to help them bid for, win and deliver public service contracts. |
| Case studies | |
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Torrs Hydro - use of equity finance |
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Intermediate |
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| Advanced |
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Book |
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| Website or download |
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Worksheet |
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| Information/guide alone |
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Training |
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