Support of the arts through state-funded grants could become a thing of the past when Scotland's new culture body, Creative Scotland, comes into being next year.

Yesterday, on the first day of a three-day cultural summit in Edinburgh, the "change director" in charge of the establishment of Creative Scotland, which merges the Scottish Arts Council and Scottish Screen, said that the future of arts funding will be very different in the future.

Although stressing that no decisions had been made and many different options are on the table, Anne Bonnar made it clear the days of grants being the only method of supporting artists and art companies are over.

Those involved in the establishment of Creative Scotland have told The Herald that loans are also being discussed as a form of support for arts companies, although there is ample room for a variety of "imaginative" financial support models which fall between 100% grants and business-style loans, including low-to-no interest loans, and finance from not-for-profit organisations.

Ms Bonnar said that Creative Scotland would be a "big brain" organisation which will lead the entire creative industries sector, including the arts, and would have considerable influence in Scottish society, as well as in politics, where she said it would have a "seat at the big table".

Ms Bonnar said "There are new models of investment and we are talking about them. Delegating grant-giving to others is one of the ideas, for example," she said.

"If, say, the budget for Creative Scotland is £60m a year, and we keep applying the same models of funding, in a traditional way with grants, we are not going to make many exponential moves in the directions that we wish.

"So we are talking about those new models - they include private funding, the use of venture capital, private trusts, and grants, too."

Ms Bonnar said that another route would be "light touch" funding, which would involve granting funding to a series of core artistic companies and institutions for a given period of time, and giving them the freedom to do what they want in that time with the minimum of interference.