Case Study: CENTRA recycles bridging loan

CAF Venturesome provides bridging loans to charities and social enterprises to help manage fluctuations in their cashflow.  Such a facility can be particuarly useful if confirmed income is delayed, or unexpected costs are incurred. 

 In August 2011, education and training charity CENTRA approached Venturesome for cashflow support.  It was forecasting a short-term cashflow shortfall due to unexpected costs combined with the cyclical nature of its two main income streams.  CENTRA had confirmed sources of income scheduled for December 2011, but lacked the cash reserves to bear the impending shortfall. 

Venturesome provided CENTRA with a £50,000 bridging loan to support it’s cashflow until the confirmed payments were received.  The facility was made from the CAF Social Impact Fund, which is invested in by CAF Trust Clients.    

Having received the expected income, CENTRA repaid Venturesome in full in January 2012.  The recycled funds will now be reinvested in other charities. 

Paul Howarth, Training Manager at CENTRA said “Due to the cyclical nature of our business a large portion of our income arrives very late in the year, but unexpected costs in the Autumn meant we were forecasting a cash deficit.  The loan from CAF Venturesome enabled CENTRA to get through this period without going into the red; and we were able to repay it as soon as the expected income hit our account.”    

To find out more about what Venturesome offers, contact us on 03000 123 300 or email venturesome@cafonline.org