|
A loan is just that, it has to be paid back and usually
with interest. A loan will commit you to an agreed repayment
schedule which can help you think through the viability of your
project. If it appears you would find it difficult to repay a loan,
you may be better looking at grant funding instead. Loans cannot
later be converted into grants if circumstances change.
Your group's governing documents, for example their
constitution, memorandum or articles of association, must give you
the legal power to borrow and pledge assets as security if
necessary. If your scheme was set up some time ago and the
documentation is unclear on this point, consult a solicitor.
The group's Trustees may be nervous about taking on financial
commitments, which might leave them personally liable or commit a
successor to ongoing repayments. If so it is important to get
advice from the loan company.
Charity Bank
The Charity Bank (link opens in a new window) works
with investors, depositors and borrowers to create a sustainable,
alternative finance market. It helps those communities and
organisation that commercial lenders may not be able to assist.
The Charities Aid Foundation
The Charities Aid Foundation (link opens in a new
window) support growth and development of small and medium sized
charities through a range of fundraising options and banking
facilities. |