There are so many challenges facing not for profit businesses. In addition to raising money in a tight economy and staying true to their mission, it is also important to know how to get a loan for a nonprofit organization.
When you need to know how to get a loan for a nonprofit organization, it is likely due to a cash shortage, meaning the answer must come quickly. Fortunately, you do have options.
Is It Possible to Get a Loan for a Nonprofit Organization?
To get finance for your nonprofit, you may think that banks are the only solution. However, banks are reluctant to offer nonprofit loans.
For one thing, banks have strict criteria regarding collateral and guarantees. They usually don’t consider grants and private gifts to be reliable sources of revenue so they are likely to deny your application.
You may find some alternative lenders willing to help with nonprofit business loans. They may have easier terms than a bank, but it could still take several weeks to receive your money. Additionally, they typically require you to have more than a million dollars in revenue and lock you into long term repayment contracts.
Is There an Alternative to a Loan for a Nonprofit Organization?
These days, more and more nonprofits are turning to cash advance companies, like Financing Solutions (www.financingsolutionsnow.com), for help. They can provide funding so you can start programs early, make payroll and take advantage of opportunities for growth.
At Financing Solutions, they work with nonprofits all the time, so they understand the unique circumstances you face. If you are an existing nonprofit with at least $350,000 in revenue each year, you are eligible for their not for profit funding.
Best of all, there is no long term commitment. You can repay the money in a few weeks or months, when your government grant or donations come in.
How to Overcome Nonprofit Organization Challenges
As the head of a nonprofit organization, it’s likely that you have ideas, vision and enthusiasm to spare. What you need is nonprofit funding to keep the doors open, increased visibility and help in dealing with board related issues.
One thing you can do is to improve your grant writing operations. This may involve taking classes or finding successful grant writers who share your passion and may be willing to offer their services for free. Without investing time in this crucial task, you could be missing valuable opportunities to get the grants you are eligible for.
You can manage governance issues with a better screening process for board members. It may also help to provide them with training on exactly what you expect them to do.
If your organization is not involved with children, cancer or animals, it can be difficult to attract attention to your cause. Social media offers an inexpensive way to increase your reach. Perhaps you can offer internships to college students to get your organization up to speed on this vital tool.
Turning challenges into opportunities is a must for nonprofit organizations and Financing Solutions can help. They will give you the not for profit financing required for growth and success.
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. That makes it an excellent backup plan.
