Conventional finance – including high street banks – offers many of the same products available from social investors with the key difference being that the investors do not have a social motivation to their investment. Mainstream banks may also offer you an overdraft facility – an agreed amount of loan finance that is available to manage your cash flow when you need it.
When might I use it?
Conventional finance is worth considering at any point you’re seeking investment to see whether the options on offer are as good or better than what’s available from specialist social investors.
Where can I get it from?
High street banks and alternative lenders to SMEs. Investment readiness support may help you to approach other potential sources of mainstream finance.
Pros
- Conventional finance may be able to offer cheaper loans than social investors
- Conventional investors may be able to invest more quickly than social investors
Cons
- Conventional investors will treat your organisation like any other business so may not be as patient as social investors if you cannot meet your repayment
- Conventional investors are not specialists in social investment so may not understand your organisation