When is pre-financing typically provided in a grant?

Pre-financing in a grant context is usually provided after the contract is signed. This is a crucial step because the contract formalizes the agreement between the funding agency and the grantee, ensuring that both parties understand the obligations, expectations, and terms of funding. Once this agreement is in place, the funding body disburses pre-financing to allow the grantee to begin their project activities without delay. This approach supports project initiation and facilitates cash flow for the grantee to cover initial expenses.

Providing pre-financing before the contract is signed could lead to issues where funds are allocated without a clear agreement on how they will be used, which could pose risks to both the funding agency and the recipient. Waiting until after the evaluation to provide funds doesn't align with the typical request for financial support, as this evaluation usually occurs after project activities have commenced or completed. Finally, disbursing funds on the last day of the project wouldn’t be feasible, as it would not allow the grantee to meet any necessary upfront costs required to effectively initiate their project.