Alternative Funding Playbooks
Venture Debt and Alternative Financing
Last reviewed: April 2026
Debt and alternative financing can be appropriate where the business needs faster capital deployment and can manage repayment obligations.
When relevant
- growth opportunities require capital before reimbursement cycles are practical
- working capital needs are tied to expansion, inventory, or delivery timelines
- financing flexibility is more valuable than subsidy mechanics
How this differs from grants
| Dimension | Grants | Debt and alternative financing |
|---|---|---|
| Capital type | Partial support for eligible project costs | Repayable capital based on financing terms |
| Assessment focus | Scheme fit, evidence quality, project logic | Cash flow, credit profile, risk controls |
| Operational burden | Documentation and claims controls | Repayment and covenant discipline |
Risks and benefits
Benefits:
- faster access to capital in some cases
- flexibility for business use cases outside grant criteria
Risks:
- repayment pressure if growth assumptions do not materialise
- higher cost of capital under stress conditions
- covenant or security constraints
Next step
Continue to Foundation and Impact Funding.