What is Grant-Based Financing?

Accessing the upfront cash needed to secure grant funding can be challenging. That’s where Pocketed’s lending partner, OKR Financial, steps in to help! But you may be wondering, what exactly is grant-based financing?

So, what is grant-based financing?

Securing a grant is only the first piece of the puzzle when scaling your business with non-dilutive funding. Most grant programs require cash upfront to utilize the funds. This means if you win a $5000 grant, you must have that $5000 on hand today to pay for project execution. You will be reimbursed by the grant provider once the project cycle is complete. But quite often, especially as a small business, you don’t always have that cash on hand, and that’s where grant-based financing saves the day.

Grant-based financing is the process of receiving non-dilutive funds that allow companies to finance a grant program before the reimbursement period. Huge win for those short on cash! 🤑

We know that the billions available annually in grant funding are grossly underutilized by those who could benefit the most, in part attributable to a lack of upfront resources and unawareness that grant-based financing services are available.

Grant funding shouldn’t just be for companies that are set for success from the get-go. It is Pocketed’s goal to democratize grant funding, and it is because of partners like OKR Financial, one of Canada’s leading debt and equity financing groups, that we are able to do so.

How can OKR Financial help?

At OKR Financial, we understand the struggle. We are entrepreneurs and angel investors too, and our Fund was built out of necessity when our founders struggled to secure financing through traditional financiers and banks. The first deal we did involved pooling private funds for a high-growth startup that had money coming to them in the form of tax credits. But the startup wasn’t going to survive until they received those government funds, and the banks wouldn’t help.

We leveraged those tax credits, financed the bridge, took first place in line for the government funds, and got paid back within months. The company was able to grow its valuation during that time, without diluting equity. This was a win-win, and we have been able to help hundreds of companies in the same way since 2015.

At OKR Financial, we’re passionate about helping strong companies grow and scale.

“Banks want to see your credit history and your assets. We want to see your potential!”

Top tips to know before accessing grant-based financing!

Pocketed’s tip: At Pocketed, one of our biggest tips is to take advantage of the resources around you. If you’re struggling with a grant application — check out our marketplace of grant writers! Can’t figure out what grant is right for you? Consider hiring a grant consultant! Don’t have the money to finance your grant but still want to retain your company’s equity? Grant-based financing is your friend and taking advantage of companies like OKR Financial can be crucial to scaling your business to the top!

OKR’s tip: Our greatest piece of advice is to get all of the non-dilutive funding you can as your company grows. Funding your growth with grants and short-term debt allows you to hang on to equity, and this is the core of our business model. It hasn’t always been easy to navigate the thousands of programs that you might be eligible for but now, using services like Pocketed’s grant matching platform, you can unlock all of those hidden dollars that are out there and leverage them for growth. 💸

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