Funding solutions for your Social Enterprise

There are many social enterprise businesses supporting people with autism and learning disabilities. The benefits are substantial. Gaining real work skills and experiences in working businesses can build confidence and in some cases provide a springboard to independent living.

With the right support, planning and opportunities from parents and employers, many people with autism have the ability to work. Despite this, recent figures show that only 15% of people with autism are in full-time paid employment – 79% of those polled who are not in employment would like to be.  Many have excellent numerical and related skills, although they find many social situations stressful. 

The figures for those with learning difficulties are similar, and although  person with a learning disability may be reliable, dedicated, committed and be positive and friendly – but they may have limited literacy and numeracy skills. They may also have difficulty in understanding and interpreting given situations and be slower to process information.

Both groups can be employed in enterprises which make allowances for their needs. Sectors such as horticulture and catering are popular for those with learning difficulties, while those on the autistic spectrum may be able to handle a wide range of complex jobs provided there is routine that supports their own coping skills .

Setting up a commercial concern for the needs of autistic people and those with learning difficulties can be challenging, but with the right funding, the challenges will be very little different from those of setting up a conventional business. The greatest challenge of all may be finding the necessary funding, and at Rangewell we are ready to help.

 

 

The Funding you need

The first step in securing the funding you need is simply to understand the different types of finance available.

They include:

• Funding to launch your business
• Asset finance - Leasing and Hire Purchase
• Operating  funding
• Tax funding

 

Funding to launch your business

If you have a sound concept for a social enterprise, it may be possible to find lenders who will advance funding to put your plans to ork

Most lenders base lending decisions on the risk that borrowers present. Your startup has no trading history so they have no evidence that they will be repaid, and many will they see the risk as too high for lending. However, some may might be persuaded by the objective of your business, and take a more positive approach. 

However, you business must be a real commercial proposition to acquire external funding. You might stand the best chance for securing the funding you will need if you prepare a detailed new business plan. Armed with this, we can approach lenders most likely to  take a sympathetic view of your plans.

Funding for business premises

 

We can help you find the necessary funding for a deposit on leased property with an unsecured or secured loan <link>.

 

Ifor the longer term, once your business has established itself,  Commercial mortgages can be used to buy virtually any business premises or even  an existing nightclub business. 

 

All commercial property finance is arranged on an individual basis. Get our help finding the most competitive lender. <link>

 

 

Asset finance - Leasing and Hire Purchase

You may want a wide range of equipment.

 

Asset finance lets you spread the cost of equipment - or assets -  while those assets are already working for you. There are several types of asset finance:

 

Hire Purchase allows you to hire assets until you have paid for them, when they become yours. It can be the simple way to spread the cost of items - such as hand tools– that you expect to give long service and will want to keep for the long term.

 

HP agreements generally last between 12 and 72 months and require a 10-20% deposit plus fixed monthly instalments.

 

Leasing is much like a rental agreement. You pay a monthly charge to use the asset. With some arrangements maintenance, repairs, registration will be the owner’s responsibility, giving you the asset without any of the additional costs of ownership.

 

It’s common for things such as refrigeration equipment which will have a finite life – it means you can easily update your equipment when you need to because of a change in plans or a better solution coming on the market.

 

Our asset finance team can help you lease or Hire Purchase almost any type or value of asset, new or used for your social enterprise. Find out more here <link>.

 

 

Operating finance for your business

Any new business will face financial challenges while it establishes a market, and your social enterprise will be no different.  It can take months for customers to discover your business and overcome any prejudices they may have, and you will need to arrange funding  for overheads - business rates, supplies, utility bills and wages until you have the reputation and level business you are aiming for.

You may be able to arrange  a short term loan to provide working capital. This will be paid back as soon as your business generates sufficient profits.

An alternative may be Revolving credit, which can replace traditional overdraft facilities. These can bring a line of credit, up to an agreed limit to be called on when you need it.  You only pay for the money you take out, so it can be a cost-effective way to provide cash for short term needs.

If you are dealing directly with the public, another solution  may be a Merchant cash advance.   A restaurant or tearoom, or garden centre may take most of its payments through your card terminal or PDQ machine. With a Merchant Cash advance a  lender will make a cash advance based on your turnover. This will be repaid by deducting a proportion of the payment every time that a customer pays by card.

We can work with you to help you find the finance you need to answer your operating finance needs

 

 
 

Insurance cover for your business
Insurance is essential for any business.

 Cover for your staff is a legal requirement  and you must have employers’ liability insurance  of at least £5m to protect you against the cost of a claim if an employer is injured or becomes ill as a result of working for in your business.

You will also need insurance for your premises and equipment  and for your liability to customers and the wider public.

Running a business staffed by people with special needs should not require any extra costs when it comes to insurance cover, but it may be best to find a specialist insurer who may understand the risks better than mainstream insurers, and to offer more appropriate policies. There are a number of ways to provide for the costs. Find out more about funding for the premiums of insurance cover..

 

Tax loans for social enterprises

Tax is an issue for every business, and although there may be certain concessions for social enterprises, your business will still face commercial relaisites. You will be liable for VAT. A  large quarterly VAT or annual tax demand can cause problems with your cashflow, particularly if it falls at a time when business is slow and cashflow is barely covering the essential outgoings.

 

A tax loan could cover the cost of your tax demands with affordable monthly payments. It could help provide better control of cash flow, and more predictable monthly payments.

Find out how a tax loan could support your cashflow <link>

 

Helping if your social enterprise runs into financial problems

If you are running a business there are no guarantees about the success it will enjoy.

If customers or orders don’t come in,  neither will the cash - which could mean your business cannot continue to trade and your employees will no longer have the job they love.

At Rangewell, we know the solutions which can help your business deal with this kind of challenge.  We can provide funding solution if your business has run into temporary financial issues - and even if you have a damaged credit history or CCjs, we know lenders who can help.

Find out more about finance businesses facing financial difficulties.

 

How we help you capitalise your social enterprise

 

At Rangewell we work across the entire lending industry, and we have finance experts with personal experience of social enterprises, where commercial success may not be the biggest priority.

 

That means will help you to find the most appropriate funding from lenders across the market – from established high street banks to alternative funding suppliers. We offer every type of finance including Unsecured & Secured Loans, Invoice FInance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Bridge Loans, Property Development Finance, Growth Finance and more.

Getting the most cost-effective source of finance can be crucial for the future of your business, and for the future welfare of your employees.

 

Coming to Rangewell means getting finance experts working to help you find you find it.

 

Call us to discuss your needs.