Where to Get a Line of Credit for Your Nonprofit
In the world of nonprofits, there are time lines, fine lines and bottom lines. These help to keep you on track and focused on your mission. Perhaps the most important line is a line of credit for your nonprofit.
There are many bumps and challenges along the line of success and it’s easy to get sidetracked. Doubts about cash flow, delaying programs and waiting for government grants can all wreak havoc on the best laid plans. A line of credit (LOC) for your nonprofit is one of the most valuable tools you can have but first you need to know where to get it.
Why It’s Important to Get a Line of Credit for Your Nonprofit
A nonprofit often gets reimbursed in large payments. However, you have recurring bills like payroll that need to be paid weekly. A LOC allows your non profit to bridge that gap.
With a nonprofit line of credit, you have a supply of money you can draw from as needed. This way, you should never run out of cash.
This type of nonprofit business loan is better than anything you could get from a bank. Traditional banks expect you to have exceptional credit and tons of collateral.
Business bank loans also take a long time to get. You might have to wait weeks for an answer on your application and months before you receive any money. This would make it impossible to make payroll and handle daily expenses.
Where is the Best Place to go for a Line of Credit for Your Nonprofit?
At Financing Solutions (www.financingsolutionsnow.com), they work with nonprofits all the time. In fact, they are one of the leading providers of nonprofit financing.
When you turn to Financing Solutions, you can get a line of credit in place in less than 48 hours. It can stay in place for up to 12 months.
To qualify, you must have at least $350,000 in yearly revenue. Every nonprofit should have a line of credit just in case.
Why the Line Between Nonprofit and For Profit Businesses Is Not as Big as You Think
Today, it’s becoming increasingly difficult to tell the for profit entities apart from their nonprofit 501c3 counterparts. For profit businesses adopt corporate social responsibility policies to ensure they give back to the community. More and more not for profit organizations have gotten their start as for profit business ventures. Some examples include Toms Shoes and King Arthur Flour.
Also, more than 30 states have legislation which requires companies to pursue social gains in addition to profits. There are now thousands of companies classified as low profit limited liability firms, allowing them to be for profit but still mission based and able to collect philanthropic funding.
In what is now called the impact investment market, donors are looking for community, social and environmental outcomes as well as a monetary return on investment. For strictly nonprofit corporations, this often spells more competition for donations and attention.
You can better compete in this new marketplace with not for profit funding from Financing Solutions. They will help ensure that your organization is on the path to success.