Key Fund

The challenge

There exists a persistent gap in affordable, patient and appropriately-structured finance for social enterprises and community organisations, particularly those in areas that have seen historic underinvestment. Many of these organisations have strong local impact and viable models, but face constrained balance sheets, uneven cashflows, and limited access to unsecured or flexible capital. The result is under-investment in capacity, assets and resilience, even where demand and impact potential are clear.

Our approach

Key Fund is a provider of sub-£150,000 loans to social enterprises, charities and community groups across the Midlands and North of England that struggle to access mainstream support. Key Fund takes a relationship-based, purpose-led underwriting approach: assessing the business, the social impact, needs/priorities, and past/future finances. It provides flexible finance, including blended loan and grant packages, tailored to what the organisation needs most (e.g., working capital, bridging gaps, equipment/property, energy improvements).

The investment

Better Society Capital has provided a term loan and revolving credit facility to support the continuation of Key Fund’s lending activities.