What’s on the menu?financing options for small and social enterprises

Traditional sources of cash

Personal savings

Family and friends

'sweat equity' Debt (bank loans,

overdraft)

Equity (dragons and angels)

Factoring

Retained profits

Grants

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social enterprise “specials”

CDFI

Community shares

Social impact bonds

Loan stock

'In-kind'

crowd-funding

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Do you have the right type of income?

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Some problems with grants...

Lead time

Restrictions on use

Cash-flow implications

Admin time/cost in monitoring & reporting

Risk of 'claw back'

Risk to credibility

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What do you need the cash for?

Dealing with failure ('rebooting' the business)

fashion/credibility

Validation (reassuring yourself)

Set-up

Development

Working capital

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Why you’re ‘un-fundable’(you don’t give people what they want...)

Their money back (loans, equity)

Financial Return (loans, equity)

Social Return (grants, loans, equity)

Outputs & Outcomes (grants)

Security (loans)

Partners (grants, loans)

Exit Strategy (equity)Adrian Ashton

Further sources info & reading

Unlocking the potential – a guide to finance Social Enterprise UK

http://www.ncvo-vol.org.uk/sfp

http://www.knowhownonprofit.org/funding/social-investment-1/social-investment

Simply Finance Co-operativesUKAdrian Ashton

*GOOD MONEY WILL NOT MAKE A BAD ENTERPRISE GOOD

Adrian Ashton