How Do Nonprofits Use Their Line of Credit
- Mostly used for payroll
- #1 reason: funding is delayed and you have to make payroll
- Your employees count on each paycheck
- Illegal to miss payroll
- You risk fines
- You risk an audit
- Your risk employees leaving
- Line used for unexpected expenses
- Line is inexpensive
- Not fun asking a board member for a loan
- Their are IRS restrictions if you get loan from board member
- Can start programs early when you know funding will be coming
- You can take advantage of buying opportunities. i.e. great price on a used truck
- A Line of Credit Solves cash flow problems that are short term
Financing Solution created a Line of Credit specifically for Nonprofits and Nonprofits are our largest segment of clients we serve so we know you well.
- Easy to get in place
- Fill out a simple online 2-minute application or call us at 862-207-4118
- We will provide a written quote that is easy to understand.
- We will go over the quote with you live
- Line costs nothing until it is used
- If you decide to move forward we will ask for:
- Board resolution saying they are aware with line being put in place
- Most recent 990
- 4 months of bank statements
- few other simple documents
- Your Nonprofit must have $400,000 per year in revenue to qualify
- Person signing contract must have 650 or better credit score
- They are not personally liable for line of credit
- except if they commit fraud
- They are not personally liable for line of credit
- Line will be set up in 48-72 hours
- Line is renewed yearly at no cost.
- The Line is a perfect backup plan
- We have clients that use the line often and some who rarely use it
- When you need to request funds:
- Log into your portal and request funds
- Payoff line at any time
- Financing Solutions
- has been in business since 2012
- is A+ rated by the Better Business Bureau
- Is 5 star rated on google reviews
- Owners of the company are actively involved and you can speak with them at any time.
Stephen Halasnik is a Managing Partner of Financing Solutions, a direct lender to nonprofits and small businesses. Over the last 25 years, Stephen has built 7 companies and he passionately believes that every nonprofit and business should have a line of credit to turn to as a cash back up plan. That belief, learned over years of working with banks for his own business needs, drove him to start Financing Solutions so credit lines could be easier to set up and less expensive.
