Category: Nonprofit Financing, Finance, Fundraising, Grants & Loans for Nonprofits Articles & Information

Financing solutions for nonprofits is often limited. The general unwillingness of banks and credit unions to lend money or make loans to nonprofits reduces the options available to those organizations. As a direct result, many nonprofits are forced to choose between carrying large cash balances to ensure sufficient cash flow in lean times and risking late payment of obligations by foregoing that cash.

There are other options available, however. Keep reading to find out what they are and how they can help your nonprofit thrive.

Not everyone qualifies for a line of credit. Some non-profit organizations have poor credit ratings and don’t have access to property that would qualify as security or a guarantor that could co-sign. There are ways to improve your chances of qualifying for a line of credit. Continue reading to find out who qualifies, who doesn’t, and how you can move from the latter category into the first!

In your nonprofit, you may be wondering why you’d need a nonprofit line of credit. After all the bad things you’ve heard about debt, you might think you should just steer clear of borrowing.

It’s understandable to have that opinion. Debt can be an albatross around the neck of businesses of all sorts, whether for-profit or non-profit organizations. When used responsibly, though, lines of credit can tremendously enhance the ability of a nonprofit to conduct its operations, adding financial flexibility and improving the resilience of the firm.

But just how should you use credit to unlock these possibilities? How can you avoid the pitfalls that have swallowed up so many companies? Continue reading below to find out how best to use nonprofit lines of credit responsibly.

Business loans for nonprofit organizations are hugely advantageous financial tools. They allow nonprofits to take on opportunities and challenges that are otherwise out of reach plus they can increase a nonprofit’s financial flexibility and credit score when used in the right circumstances.

But some non-profit organizations make mistakes when they take out business loans. From failing to adequately plan for the interest expenses to neglecting to optimize their credit scores, nonprofits can fall prey to a number of common errors. Continue reading below to find out what those errors might be and how you can avoid them.

If you’re seeking out a line of credit, you may be surprised to learn that there are a lot of options available to increase cash flow. For most people and firms with relatively good credit (and even those without), there is no shortage of lenders willing to extend credit. Of course, these options are more limited when you’re a nonprofit. But even nonprofits have a couple of choices when it comes to taking out a line of credit.

So, what should you look for when choosing a credit line for non-profit organizations? Continue reading below to find out!