How to Get a Line of Credit for Nonprofits
Many aspects of how you run your nonprofit organization depend on your ability to manage cash flow. That’s why it’s important to know how to get a line of credit for nonprofits.
How great would it be to operate your nonprofit without fear of running out of money? Getting a line of credit for nonprofits puts you closer to that empowered position.
Why it’s Hard to Get a Line of Credit for Nonprofits
Most nonprofits deal with huge ups and downs in cash flow. This is due to the fact that a lot of their funding comes in large checks but yet their expenses tend to stay constant throughout the year.
Nonprofits usually have a hard time getting any type of bank line of credit credit or loan. A bank will want the loan backed up with 100 percent collateral. Also, you will have to fill out mountains of paperwork with little chance of success. This is a waste of your already limited time.
Additionally, a traditional bank will look at your financial situation, history and profile. You must prove the viability of your program; financial due diligence and that you have a long term plan for how you will repay the nonprofit business loan. Without plenty of collateral and sound financials, you will be turned down.
Where is the Best Place to Get a Line of Credit for Nonprofits?
What most nonprofits need is to find short term business financing to deal with a short term funding problem. More and more are finding success with alternative lenders, like Financing Solutions.
Financing Solutions (https://financingsolutionsnow.com/campaign/creditline/) is the largest provider of lines of credit to nonprofits. Their lines are not based on collateral, meaning that you do not need to back up the line.
Since they work with nonprofits all the time, they understand the unique funding challenges you face. Therefore, they streamline the process so you can get the nonprofit business financing you need in about 48 hours.
Unlike a bank, they don’t put restraints on how you use your money. This makes it ideal for meeting payroll, paying bills or compensating vendors so you can start programs on time. Every nonprofit should have a line of credit just in case.
How to Run Your Nonprofit More Like a For Profit Business to Grow and Succeed
Business is business. In truth, the only thing separating a for-profit business from a nonprofit organization is what you do with the money you bring in. To bring in more of it for your nonprofit, you may have to think more like a for-profit.
One thing you may have to do is to evolve your mission. Donors, the economy and situations change. Thinking about scalability and sustainability will help you adapt to these changes and ensure your survival.
You should also look for strategic partnerships. Find a business or other organization that believes in and complements your mission. For example, if your organization works to deliver potable water to underserved populations, you might search for a transportation company willing to donate time, space or personnel to help you get it there.
The best thing your nonprofit can learn from a for-profit is the benefits of securing emergency nonprofit business funding. Your best option in this area is Financing Solutions.
If your nonprofit would like a line of credit that you can use when cash flow is down please visit www.fscreditline.com/np to learn more, to apply and to receive a written offer. A Line of Credit for your nonprofit costs zero to set up and zero until you use it, making it an excellent backup plan.