Cashflow Fund

The Cashflow Fund is a £4 million fund that provides short-term loans (up to two years) to organisations to cover short term cashflow needs required to bid for, win and deliver public sector contracts.

The fund is designed to support an organisation through the early stages of public service delivery, before it can generate income. The Cashflow Fund offers short-term loans, bridging loans, reserves cover and overdraft guarantees, either on their own or as part of a Futurebuilders Full Investment.

The minimum amount offered for the short-term loans is £50,000, and we will work closely with you to create a short-term loans package that best meets your organisations’s needs and circumstances.

Bridging, short-term loans

Bridging loans can be provided to help you cope with a short-term gap in funding. This could be during property purchases or to cover you while you are waiting to receive delayed local authority or European funding.

We would normally expect these loans to be for a period of 3-18 months, but can consider longer periods depending on your situation.

Try our loan repayment calculator

Reserves cover

Reserve covers can be provided to help you keep a minimum level of reserves on your balance sheet if this is a requirement for you to win a contract. In some circumstances we may ask that the funds are kept in a separate bank account held jointly by you and Futurebuilders.

Overdraft guarantees

Overdraft guarantees are provided when your bank is prepared to give you an overdraft facility, but requires additional security. In this case we can provide a guarantee to your bank for the amount required. We expect this facility to match the term length of the bank overdraft agreement.

What the Cashflow Fund is not designed to cover

The Cashflow Fund is designed to provide short-term loans and support to cover cashflow issues created by a specific contracting situation. It is not meant to cover unforseen shortages related to day-to-day operating expenses, for example salaries, rent and suppliers.

Interest rates

Our Investment Officers will work with you to understand the consequences of each interest rate option but the ultimate decision will lie with you. Your investment package will be tailored to meet your particular needs and circumstances. Our standard interest rate is 6% for the duration of the loan term and is available for all investments.

Eligibility

• You must be a third sector organisation committed to winning public sector contracts
• At least 51% of your project’s (as opposed to your organisation’s) long term income must come, directly or indirectly, from public funds
• Part or all of your project must be unbankable (in other words, would you be unable to secure short-term loans for this project from a commercial bank?)
• You must be willing and able to take on short-term loans
• Your service must mainly benefit people living in England

How to apply

There is no application form for this fund. If you want to find out more or apply for an investment:

• Submit an enquiry (please note that applications for Futurebuilders have now closed so no furthur enquiries will be accepted)
• Call our enquiry line on 0191 261 5200
• Send an email to [email protected]

What we need from you

We will assess your application mainly by phone, although we may arrange to come and meet you if necessary.

In all cases, we will ask you to:

• Be available to discuss the application on the phone
• Provide historic financial information quickly (annual accounts and up to date management accounts)
• Provide a breakdown of the costs an investment is needed to cover
• Provide contact details for your potential purchaser, if appropriate

During the phone conversation we will ask you to:

• Explain how your organisation is constituted and confirm that it is willing and able to take on short-term loans
• Explain the details of any existing contracts and/or contracts you are planning on bidding for
• Explain why you need investment and what costs you need an investment to cover
• Explain how you plan to repay the loan

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 (please note that applications for Futurebuilders have now closed so no furthur enquiries will be accepted)