The benefits of loan funding Return to Application resources

Loan funding has many benefits for third sector organisations. Organisations that have secured investment from us say that loan funding:

• Can be quick and easy to secure
• Ensures their sustainability
• Improves their ability to secure contracts
• Improves their reputation
• Sharpens their financial planning
• Ensures a greater focus on income generation
• Ensures a greater focus on full-cost recovery

We are aware that loan funding is new to many organisations. In fact, over half of our applicants have never borrowed before. That is why we place such heavy emphasis on capacity building and working closely with you to create a package that meets your organisation’s needs and circumstances. We will also never lend you more than you can realistically afford to repay.

What does a Futurebuilders loan look like?

If you apply for a Futurebuilders Full Investment, your loan would be a minimum of £30,000 (there’s no upper limit). You will almost certainly receive capacity building support and possibly a grant as well.

The interest rate on our Full Investment loans is 6% and we will work closely with you to design a tailor-made package that meets your organisation’s specific needs and circumstances.

A Futurebuilders Tender Fund loan is interest-free for three years. Tender Fund loans are standalone investments to help you tender successfully for specific public service delivery contracts.

A Futurebuilders Modernisation Fund loan is interest-free for five years. Modernisation loans of between £30,000 and £500,000 are available to organisations who are providing services affected by the recession.

What next?

Want to read some examples of what your Futurebuilders investment package might look like? Ready to begin the application process?

• Search our database of investments
• Submit an enquiry