Arts and cultural organisations in the UK are “warming up” to the idea of loans, and other forms of repayable finance, according to a new piece of research.
Just 15% of arts organisations responding to a survey run by Nesta have taken out repayable finance before, but the innovation agency is predicting that funding cuts, and the associated drive to increase earned income, will increase demand in the future.
Nesta, which is managing a £7m pilot loan scheme in England, is predicting 16% of arts and cultural organisations in the UK will seek repayable finance in the next five years, totally £309m in loans, repayable grants, equity and bonds.
Fran Sanderson, Director of Arts Programmes and Investments at Nesta, said: “We’ve had a real sense through the investment period of the Arts Impact Fund that there would be strong and increasing demand for this kind of repayable finance. It felt as though organisations in the sector were warming up to the idea, and seeing the potential benefits of this type of finance through our and other case studies... Keep reading on ArtsProfessional