Academies are not allowed to take up loans (including bank overdrafts) without permission of Secretary of State which will not normally be given. Academies may find that the profile of revenue funding budget share payments does not accommodate up-front spending, for example building works. The ESFA has a facility to advance future years' funding to academies. Academies need to provide a full business case and application to support this request.
More information can be found on the GOV.UK website