June 6, 2023
3 mins

Could Your Charity Achieve More? 6 Ways Asset Finance Could Help Your Mission

Key take away points:

  • How asset finance can help charities achieve their goals sooner and maximise their impact.
  • Types of assets charities could finance.
  • Balancing investment risk - government guidance for trustees.

A charity or not-for-profit social enterprise may have different ambitions or objectives to the average business, but they are fuelled by the same thing: money.

Without money, charities struggle to make the impact they want to in their communities, but in securing funding through regular donations, fundraising projects or applying for grant funding is both challenging and time consuming.

Often the organisation is unable to provide as much support as they want to because of inadequate cashflow as well as not being able to invest in the equipment or facilities they need to achieve their objectives. Applying for loans can also be difficult, largely because they often require collateral or a lengthy history of a steady income.

In some cases, however, there is another option in the form of asset finance for charities.

Here are 6 ways that asset finance could support and strengthen your charity’s mission and help you maximise your impact.

1. Preservation of Capital

By using asset finance, you may be able to get what you need to improve your service without having to part with big chunks of cash. The cash you keep in the bank can then be put to other uses in your organisation or kept safe for improved financial stability.

2. Cashflow management

By financing assets, your charity could spread the cost of ownership over time via affordable monthly payments. This could help you manage cash flow more effectively and avoid unexpected spikes in expenditure.

3. Flexible repayment options

Asset finance agreements can be structured to meet the specific needs of your charity, with repayment terms that match your cash flow or revenue cycles.

4. Improved productivity

By acquiring the assets that you need to carry out your work, you could improve productivity, expand the scope of your operation, and boost efficiency, meaning a greater impact in your community.

5. Access the latest technology

Asset finance can help you access the latest technology and equipment, which can help you stay competitive, relevant and provide better services to your beneficiaries.

6. 100% finance available

You may be able to combine all project costs, including fees, labour and delivery charges into one low, fixed monthly payment. For example, an interior refurbishment of your premises with lots of different elements from interior decoration, furniture, technology, security, and other facilities.

What assets could your charity finance?

It’s impossible to list all the assets that an organisation could finance, so it’s always worth asking us about your ideas or projects no matter how unusual they might be!

Having said that, here are some examples of the assets your charity could access through asset finance.

  • New technology or equipment e.g., communication devices, IT infrastructure, EPOS systems for charity shops.
  • Vehicles, e.g., cars, vans, minibuses, trucks, or other specialised vehicles such as mobile clinics or libraries.
  • Energy saving, green technology e.g., solar panels, wind turbines, geothermal systems.
  • Furniture such as desks, chairs, and storage options.
  • Facilities and appliances like lighting, plumbing, or HVAC systems.
  • Interior fitout projects.
  • Racking and mezzanines for warehouses, office spaces and storage spaces.
  • Musical instruments for a community orchestra.
  • Sports equipment for a youth sports program.
  • Equipment for disaster relief organisations.

Could asset finance help your charity achieve more?

Get what your charity needs to achieve your objectives and maximise your impact in your community, all while maintaining a healthy cashflow.

At Bluestone, we have been financing assets for organisations of all sizes and across a huge range of sectors for over 25 years. The good news for you is that this means we have well-established relationships with lots of different lenders, so we can ensure your application is presented in the best possible way to the lenders most suited to your project.

If your charity needs new equipment, technology or you are considering an investment in your facilities, or you’d just like to speak to someone about your options, get in touch today.

IMPORTANT NOTICE: It is important that charities understand their legal and financial obligations when it comes to investments and funding, as well as any risks or tax liabilities they may be exposing themselves to.

The UK government provides guidance on charities making investments.

‘Charities invest so that they can further their charitable aims. They can invest in a number of ways to achieve their aims, and there are specific legal duties and decision making processes attached to each. If trustees have considered the relevant issues, taken advice where appropriate and reached a reasonable decision, they are unlikely to be criticised for their decisions or adopting a particular investment policy.’

Click here to read the government’s full guidance for trustees.

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