4 Signs your Charitable Organisation needs a Short Term Loan
So your charitable organisation is getting pretty well established and you are beginning to make, or have made a good name for the work that you do. Now you need more money to scale up and provide more services.
It’s no secret, relying on donations, investment, funds and grants can slow things when a charity is trying to develop and grow. Many charities worry about the financial implications of taking a loan with interest. But, a short term loan paid over a brief repayment period may be the right thing for your organisation.
You can use a short term loan to make crucial investments like a new building, funding new and existing projects happen very quickly. To help you be sure, read these 4 Signs your Charity needs a Short Term Loan.
- You are achieving slow growth in your organisation
The application for other sources of finances like grants and investments take time. Whilst you wait, your organisation cannot really provide the services its users need immediately and over the long term. Donations and investment may be far and few between. And, at times you need finance to get these additional sources of finance in the first place. Resources cost money and that’s what you lack.
- High street bank loan rejected
Most times banks are known to give loans to organisations they view as commercially viable. They want to see a clear return on investment. Since a charity is not for profit, banks and the people in them that approve loans, aren’t always convinced your charity will be in a strong financial position to repay a loan.
- You need to unlock other sources of finance
Projects like social housing, events, new building all attract extra funding and income and eventually make money. Some grants and funding applications require you have these in place before granting an application for more money. With a short term loan, you can get the money you need to work on these much needed projects. This then speeds up the process for securing further funding.
- Support running costs whilst waiting for funding and grants
Staff need to be paid. There are administrative costs and marketing campaigns that require money. You cannot put these activities on hold whilst your organisation waits for funding and grant applications to be approved. Your charity simply won’t function.
Many charities realise the importance of applying for short term loans and quickly getting the necessary finance to move projects forward. Short term loans can be paid off quickly in the interim whilst alternative sources of finance are sought.
JL Money is one of a few lenders who provide specialist charitable organisation short term loans. We are a fair and reliable lender and are always happy to give you free advice on borrowing. To learn more, call or contact us through our online form. We may have a solution that suits you.
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