They say that good things come to those who wait. However, there’s nothing that says you can’t hustle in the meantime. Therefore, while you are waiting for a grant for your NPO, you should get a line of credit to tide you over.
When you are waiting for a grant for your NPO, at least you can see a light at the end of the tunnel. Your money is coming, if you can just wait long enough. Unfortunately, this is the hard part, as you still have bills to pay and nonprofit payroll to make. Thankfully, you do have options.
How a Line of Credit Can be Valuable for Your NPO
While you may be able to recite your nonprofit’s mission in your sleep, it’s vital that you also have a level of expertise about financial management issues. For one thing, you must understand what a nonprofit line of credit (LOC) can do for your organization.
Your organization can apply for a loan, just like any other business. However, nonprofit business loans can be difficult to obtain. That’s why many nonprofits turn to a line of credit instead.
A LOC can be a lifeline for your 501c3 organization. This is a type of loan that gives you a fixed sum of money that you can borrow from only when you need it. It will allow you to continue delivering vital services while waiting for nonprofit loans and grants.
You can get either a revolving or non-revolving line of credit. If it’s revolving, once you borrow from the line and repay the money, you can borrow it again and again. A non-revolving line means that once you take money from the line, it’s no longer available.
Where is the Best Place to Get a Line of Credit While Waiting for a Grant?
For temporary cash flow needs, a line of credit makes perfect sense. You should know that going to a bank to obtain one is not easy. More and more nonprofits are finding success by turning to an alternative lender, like Financing Solutions (www.financingsolutionsnow.com).
Financing Solutions is a leading provider of not for profit funding. They understand that a nonprofit capital needs are complex and numerous and will work with you to grow your business.
Things Your Nonprofit Should Not be waiting for
Don’t wait for donors to come to you. Be proactive and use all available tools to promote your organization and engage prospects. Find every opportunity to tell your story and advance your mission. This can be done through social media, special events and marketing initiatives.
Don’t wait for minor issues to become major headaches. Sometimes, you may notice a little issue but just hope it will go away on its own. Activities such as misreporting information and conflicts of interest can destroy your reputation and impact your ability to raise funds if discovered. Develop a code of ethics for your organization and stick to it. This way, everyone knows what’s expected, the consequences for breaking the rules and what your organization stands for.
Don’t wait to start programs on time. To pay vendors, you will need cash. You can get it with nonprofit business funding from Financing Solutions.