Bridging the Gap: How bridging loans can help charities and social enterprises

13 Jul 2026

  • Investment

For charities and social enterprises, grant funding can unlock vital community impact. However, when grants are paid in arrears, at certain milestones or once a project is completed, organisations need upfront cashflow to deliver the impact at the heart of their mission. A bridging loan from Social Investment Scotland (SIS) can help turn confirmed funding into a completed project.

Being awarded grant funding can be a major milestone for a charity, social enterprise or community organisation. It can unlock new services, support vital projects, improve facilities, create opportunities and help organisations deliver lasting social, environmental or community impact.  But grant funding does not always arrive when the costs do.

For many organisations, grant payments are made in arrears and can create a very real cashflow challenge.

That is where a bridging loan from SIS can help.

What is a bridging loan?

A bridging loan is a short-term loan designed to help organisations cover a temporary cashflow gap. For charities and social enterprises, this can be particularly useful when grant funding has already been confirmed, but payment will only be received after certain criteria is met or costs are incurred.

A bridging loan can provide the upfront finance needed to get a project started, keep moving and ensure it is delivered on schedule. The loan is then repaid by the organisation directly from the grant funds once they are received.

SIS bridging facilities provide loans between £10,000 and £375,000 for up to 2 years. A 2% arrangement applies together with an interest rate of 1% per month on outstanding balances (charged daily and paid monthly or quarterly as required; equivalent to 12% per annum).

2026 Bridging Loans Process

How SIS bridging loans work

  1. You secure grant funding for a specific project.
  2. You apply for a bridging loan to cover delivery costs until the grant is paid.
  3. SIS provides the loan to help you carry out the project.
  4. You repay the loan from the grant income once the grant funds are received.

 

A flexible approach to short-term finance.

Every project is different, and every organisation’s cashflow position is different. Bridging loans can be tailored to the needs of each individual project and organisation, after a conversation with our team. For example, if needed, a SIS bridging loan can be obtained quickly with minimal documentation, enabling organisations to act quickly.

Speak to SIS about your project

If your charity, social enterprise or community organisation has secured grant funding that will be paid in arrears, at certain milestones or at project completion, a bridging loan could help you access the upfront finance needed to deliver your project.

To find out whether a bridging loan is right for your organisation, please get in touch with the SIS team and we’d be happy to discuss what is best for you.