Stages of Social Enterprise Capital

Business Plan Blog

Growth or Expansion Stage: Once they have hit or surpassed financial break-even, the social enterprise may be able to access debt capital and to establish a credit history. Socially motivated lenders may be able to provide flexible or subordinate debt to a social enterprise. It is crucial to wait until the social enterprise is beginning to turn a profit before they are ready to support debt payments. At this point in financing, debt capital is likely to be preferred.