Bridging Loans
A SIS bridging loan is a short-term loan that provides quick access to funds for social enterprises and charities that need to cover a short-term cash shortfall.
What are SIS Bridging Loans?
Our bridging loans serve as short-term financing solutions that help social enterprises manage temporary cash flow issues or seize growth opportunities without waiting for long-term funding.
How Bridging Loans work
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Cash flow gaps:
Many businesses face cash flow shortages due to delayed payments from customers, seasonal fluctuations, or unanticipated expenses. A bridging loan can help cover day-to-day operational costs, such as payroll or supplier payments while waiting for incoming revenue.
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Retrospectively paid grants:
SIS understands that some grant providers require funds to be spent before a grant can be claimed. This can sometimes put pressure on cashflow and a SIS bridging loan can ensure projects are not held up by this.
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Business expansion:
A social enterprise looking to expand its operations may need immediate funding to act quickly, especially if waiting for traditional financing would mean losing out on a time sensitive opportunity. Bridging loans provide the capital needed to make a down payment or close a deal.
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Property purchases:
Social enterprises may use bridging loans to acquire assets such as property. For example, if a company needs to buy a new property to expand its operations - but has not yet sold off its old property - a bridging loan can help facilitate the purchase.
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Many other reasons:
There are many other situations where a bridging loan might be the answer to your cash flow issues. Delayed income, sales in arrears where you have paid costs up front or just unexpected financial situations. Our team are happy to discuss your specific situation and recommend what is best for you and your organisation.
Bridging Loans for Charities and Social Enterprises
The benefits of bridging loans
Fixed-rate loans
It's reassuring to know what regular payments will be.
Versatility
Bridging loans can be used for a wide range of purposes, from business expansion to covering operational costs.
Flexible and patient repayment plans
Allowing you to adapt and plan your business operations.
No personal guarantees
And security to take out a loan is not essential.
Relationship-based approach
SIS Investment Managers guide your hand through good times, and supportive in times of challenge.
No application forms
It starts with an informal conversation with one of our Investment Managers.