Will we require any security?

The first thing to say is that we do not believe that trustees or directors of social enterprises should be asked to provide personal guarantees for any borrowing. 

However, as a charity ourselves, we do want to make sure that if your business does not work out as planned, we get as much money back as possible so that we can help other social enterprises.

We will usually ask for some sort of security if the business has assets. For loans to finance property purchase or improvements we will normally ask for a mortgage on the property. For loans to finance other fixed assets will normally ask for security over the assets concerned. For working capital loans we will normally ask for a debenture of the assets of the company.