As a nonprofit, you know that just being there to provide services can make a big difference in your community. But is there a not for profit bank to help you fulfill your mission? Unfortunately, there is not a not for profit bank but there are for-profit banks that work with nonprofits. There are also […]
Over the last decade, the same financing tools that small businesses have used are now commonly used at nonprofit organizations. Let’s talk about how nonprofits are using various types of financing and what are the best banks for nonprofit organizations overall when considering bank accounts and loans. It all comes down to what your banking […]
There are two types of scenarios that cause a need for a solution for payroll funding. Scenario one is where you have time to look for and review options for payroll financing or working capital to grow your business. Scenario two for funding options is when you have a hiccup in your cash flow and […]
There are nonprofits lenders who provide loans specifically to nonprofit organizations. This article will serve as a guide to help you save time and money. Let’s put your nonprofit organization in a better position to get the desired business loan, mortgage, or Line of credit. Nonprofit Financing Options: business loans, lines of credit or mortgages As a nonprofit grows, it is […]
Eric Coffie has seen it all when it comes to bidding and winning government contracts. Whether those bids are with the state or federal government, Eric shares his insider’s knowledge from his vast experience running his own steel structure construction business to his current company, Govcon Giants, that helps companies win government bids. On today’s […]
The Small Business Association (SBA) traditionally has an important role in providing access and opportunity for small businesses. A non profit is a small business, so it begs the question: Can a non profit get loans from the SBA other than the PPP or Disaster Reflief program? Approximately half of the American workforce works for […]
If you are now investigating how to get a loan for nonprofits, more than likely there is an immediate need. You will be happy to know there are more options for both a non profit loan and a non profit line of credit than in the past. Some loans are fast to get in place […]
If you run a nonprofit business, you probably know how to get government grants, raise private funds and get reimbursements from governments. There are plenty of websites and organizations to help with that. It is far more difficult to know how a nonprofit can get a 501c3 loan or a quick nonprofit line of credit. […]
Personal guarantees are a financing tool designed to reduce the risk to a lender if a borrower defaults on a loan or line of credit. As with all things related to risk, personal guarantees don’t eliminate it. They merely shift it from one party to another. In this case, the risk shifts from the lender to the person signing the guarantee.
The crux of the agreement is that the person signing the guarantee, called the guarantor, will pay the lender an agreed-upon amount no greater than the outstanding amount of the loan or line of credit if the borrower defaults.
For various reasons, people tend not to want to be guarantors for a business loan or line of credit. Continue reading to see some of the risks involved in signing as a personal guarantor.
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.