Impact-linked Finance
Impact-linked finance is an innovative funding approach that rewards market-based organisations for achieving measurable social or environmental outcomes. Financial incentives are directly linked to the successful delivery of agreed impact, aligning financial returns with positive development results.

Through "better terms for better impact," impact-linked finance rewards enterprises for delivering measurable social and environmental outcomes while supporting sustainable growth.
Impact-linked finance (ILF) is a flexible funding approach that can be applied across financial instruments, including equity, debt, and guarantees. Unlike grants, funding is linked to the achievement of predefined impact metrics, aligning measurable social and environmental outcomes with sustainable business growth.
Our interventions
Key transaction characteristics
Instruments
The ILF instruments available include Social Impact Incentives (SIINC), reimbursable SIINC, ILF loans and impact-ready matching fund.
Ticket size
Depend on a variety of aspects, including growth stage, profitability, investment round, selected ILF instruments, etc. Ticket sizes will be of a maximum of CHF 250’000.
Terms and metrics
Will be defined on a case-by-case basis, but typical ILF transactions last for 2-3 years, with 2-3 enterprise-specific metrics verified every 6 or 12 months.
Eligibility criteria
Impact-linked finance eligibility criteria
- Sectoral focus: Applying enterprises must be working in the financial inclusion sector.
- Geographical focus: The enterprises must be active in one of SCBF focus countries.
- Track record: Enterprises must be operational for at least three years with a customer base of at least 3,000 and associated revenues.
- Financial sustainability: Enterprises should have achieved financial sustainability - or have a credible path to profitability or break-even-to ensure they continue delivering positive impact beyond the duration of the Impact-Linked Finance transaction.
- Business model: Although there are no specific constraints regarding the legal form the enterprises need to have a strong business model and generate revenue (and potentially profit) out of their activities.
- Impact focus: Priority is given to enterprises serving vulnerable and low-income populations, including women, MSMEs, smallholder farmers, and migrants. Enterprises without an existing impact focus may also be eligible if they demonstrate the commitment and capacity to deliver measurable positive social outcomes.
- Impact track-record: Enterprises should have a track record of measuring and monitoring impact using relevant indicators to support the design of performance-based incentives. High-potential enterprises without established impact measurement systems may be eligible for technical assistance to strengthen their impact management and reporting.
- B2C: The enterprise needs to have a direct and verifiable influence on the impact being created for end-users. Consequently, B2C business models will be prioritised.
FAQ
Here you can find answer to our frequently asked questions
We welcome projects that demonstrate a strong connection between financial initiatives and advancements in agriculture, health, housing, and climate resilience. Priority is given to projects that address the specific needs of women and migrants.
Detailed application guidelines and submission procedures can be found on our website. Please review the eligibility criteria and follow the instructions outlined in the application process.
We welcome projects that demonstrate a strong connection between financial initiatives and advancements in agriculture, health, housing, and climate resilience. Priority is given to projects that address the specific needs of women and migrants.
Yes, projects focusing on climate resilience should demonstrate innovative strategies to address and adapt to climate change impacts. We encourage initiatives that contribute to long-term sustainability and resilience in the face of environmental challenges.
Our grant program is primarily designed for organizations; however, collaborations and partnerships with individuals are encouraged. Please review the eligibility criteria for more details.
Yes, we offer post-grant support and conduct regular monitoring to ensure that funded projects are progressing as planned. We aim to build a collaborative relationship with grantees to maximize the positive outcomes of each project.


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