What can a school use a crowdfunded loan for?

 

The short answer is almost anything. We know that there’s pressure to keep school fees down and to spend that income on the educational needs of pupils. Capital development programmes are also needed to continually improve the facilities and education offered by independent schools. So, could a crowdfunded loan help achieve both? InvestMySchool allows you to create a funding campaign to suit your specific requirements. Your funding request can be fulfilled by direct loans from parents, alumni and the school community alongside any donations that they may wish to make.

Your school can apply for a loan from £25,000 – with no maximum amount. With this flexibility your school can borrow money to provide additional working capital, fund small capital projects such as new playground equipment, through to new sports facilities, performing arts centres, student or staff accommodation. You can start a campaign to raise funds for a phased project or programme of capital developments. You can also communicate that plan to the community through your bespoke campaign page. If your school already has bank borrowing that has been used to fund developments, then you can also use a crowdfunded loan to refinance at what could be a better rate.

The loan element of any funding campaign can be secured against a first or second charge on property or assets, or a debenture over the school. The cost of legal work is included in the one-off marketing fee, so that you know the cost upfront. There’s also an opportunity to select a deferred repayment schedule, or bullet repayment method. See the FAQ’s about the different repayment methods here.

If you are already raising money by donations from parents to help fund bursaries, then a crowdfunded loan could be the answer to funding capital projects. Constantly appealing to parents and alumni for donations alone can lead to fundraising fatigue. This can slow the whole process down and lead to delays in delivering projects. Why not accelerate your next development programme with a crowdfunded loan through InvestMySchool?

Click here to find out more or contact Richard Wood on 01225 312388 or Richard.Wood@InvestMySchool.com to discuss your requirements.

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