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.