Zara Ford, Project Manager at the North East Combined Authority, talks about the positive impact of social investors, and introduces the North East’s new Flexible Social Finance fund

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Top tips:

• Each social investor will vary in terms of what they can offer, e.g. interest rates and repayment periods. Explore different options before making a decision.
   
• Try to be in a position to articulate what you want the money for and why. Sometimes a shopping list of quotes from builders, or prices for equipment can be helpful.
   
• Be honest, don’t try and hide information. Social investors prefer to know all the facts so they can help from the very beginning.
   
• Don’t be afraid to ask questions - there’s no such thing as silly questions. If potential investors don’t know your level of understanding, they can’t provide the help you need.

Read the full article below…

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Throughout the North East, socially trading organisations are tackling some of society’s biggest difficulties. Despite being fantastic problem solvers, socially trading organisations often struggle to secure finance due to commercial lenders favouring profits over social impacts.

This is where social investors are different. Social investors want to see the money used for good; increasing social impacts, rather than a sole focus on profit.

Social investment is repayable finance; loaning the money to help organisations achieve their social goals. Unlike grants, which are restricted in their use, social finance has the ability to be used as freely as a commercial loan. Examples include purchasing a new property, purchasing equipment, or covering staff/operating expenses while undertaking renovations.  

Each social investor will vary in terms of what they can offer, and interest rates and repayment periods will vary, so it’s best to explore options before deciding what’s the next step for your organisation. 

Social investors have a duty to protect both the lender and the borrower, ensuring goals are achievable and lending is affordable.  

The North East Combined Authority, in partnership with Big Issue Invest and Power to Change, has recently launched its new Flexible Social Finance fund; investing in organisations with strong social impacts who cannot secure finance elsewhere. We’re listening to the voice of the social sector and are committed to removing barriers in accessing finance. 

Flexible Social Finance is able to make investments of £50k - £400k and offer repayment terms over one-five years. The fund is open to organisations actively operating within the North East that have strong social impact goals and are struggling to secure affordable finance elsewhere.

The Flexible Social Finance fund is working in unison with many lenders and support providers across the North East, helping to secure the right support for anyone looking to grow their social impact. If you’d like to find out more, please visit the resource page on the North East Growth Hub.

For help and support with access to finance and funding, visit the Finance and Funding Toolkit on the North East Growth Hub.

You can also book an appointment to speak to one our expert Business Support Advisers to understand what finance and funding is available to you and your business.