From Grants to Growth: Why Loan Finance Matters for Enterprising Charities
For many organisations, growing impact often starts with grants. However, long-term success and sustainability often require something more flexible. That’s where loan finance can make a real difference.
The funding landscape for charities, community organisations, and social enterprises has changed significantly over the last decade. With tighter public budgets and less grant funding available, many organisations have started or increased their trading activities to generate income and improve financial resilience. Indeed, according to SCVO, the sale of goods and services now brings in half of the voluntary sector’s income.
But trading is not just about making up for lost funding; it can also be a great way for organisations to create a greater impact that advances their mission.
Firstport’s newest product, Step Up, is a 0% interest loan designed for enterprising charities and social enterprises looking to build on proven ideas. The flexible repayment terms mean organisations can decide how and when to repay, based on what works best for them.
An example of a social enterprise doing just that is Health by Science. Based in Edinburgh, Health by Science delivers physiotherapy-led rehabilitation programmes for people living with chronic health conditions.
Since receiving a Firstport grant in 2016 to launch the social enterprise, Health by Science has grown to employ six full-time staff and built strong NHS referral pathways. To meet rising demand, the team wanted to expand their services, and that’s where Step Up came in.
How Step Up Helped
Step Up offers 0% interest loans of up to £30,000 with flexible repayment options and a simple application process. It helps organisations invest in growing proven ideas and programmes without the burden of high-interest costs.
Decisions are typically made within three weeks, allowing organisations to move quickly when opportunities arise.
With a £10,000 Step Up loan, Health by Science is now doubling class capacity to reach more people, offering discounted class spaces for free to those facing financial hardship, and creating another physiotherapist role.
Why Loan Finance Works
Health by Science’s story highlights the benefits that loan finance can offer:
- Fuel for growth – A loan can provide the capital to scale what’s already working and expand proven programmes.
- Financial independence – Encourages a shift from relying on grants to building long-term financial resilience.
- Greater impact – Enables enterprises to increase reach, create jobs, and offer more accessible services to their communities.
Investing in Impact
Loan finance like Step Up isn’t just funding, it’s a catalyst for sustainable growth. It empowers organisations to plan, expand their reach, and deliver deeper social impact.
For Health by Science, that means more people moving, connecting, and thriving, proof that the right kind of finance can transform both organisations and lives.
With the festive season fast approaching, a Step Up loan could offer some organisations an opportunity to meet any seasonal surges in demand and generate additional income. It’s not too late to apply!