Cashflow Fund

Cashflow Fund 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 or development capital (the money needed to support an organisation through the early stages of a scheme, before it can generate income) needed to to bid for, win and deliver public sector contracts. The minimum loan amount is ?50,000, and we will work closely with you to create a package that best meets your organisations’s needs and circumstances. Bridging 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. 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 for to cover cashflow issues created by a specific contracting context. It is not meant to cover unforseen shortages related to day-to-day operating expenses, for example salaries, rent and suppliers. 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 a loan for this project from a commercial bank?) , You must be willing and able to take on a loan , Your service must mainly benefit people living in England How to apply There is no application form for this fund. If you want to enquire about a Cashflow Fund Investment: , Submit an enquiry , Call our enquiry line on 0191 261 5200 , Send an email to info@futurebuilders-england.org.uk 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 a loan , 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 Need business plan guidance? Futurebuilders needs to be sure that your organisation is ready to take on an investment by looking at your organisation’s business plan. If you don't have one, why not read our business plan guidance? New to loan funding? Loan funding is new to many third sector organisations and many of the organisations that come to us has never borrowed before. But it has many advantages. Find out the benefits of loan funding. ? Futurebuilders 2009