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

So you’ve gone to one bank and credit union after another looking for a line of credit for your nonprofit and they’ve all turned you down. You don’t understand why. Your financials are in great shape. Your board is responsible and qualified. Your management is top-notch. Plus, you’ve been around for forever and a day.

The truth is that it probably isn’t your fault. Banks and credit unions are extremely hesitant to extend lines of credit or loans to nonprofits for a number of reasons. Keep reading to find out why and what you can do about it.

Lines of credit for non-profits are useful in an astounding variety of situations. Whether you’re hoping to free up more cash to distribute to the communities you serve or pay your expenses in a month where all of your revenue seems to be coming in late, a good line of credit can meet your needs.

But a line of credit for non-profits can be hard to obtain. Many banks and credit unions won’t even consider extending credit to non-profits. For those that do, most require personal guarantees or collateral.

So how does a non profit go about finding a financing product that works for them? Read on to find out what a credit line can do for your non profit and where to go about finding a lender that will work with you.

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.