Nonprofit Lines of Credit
Finding access to quick funding is the first step to turning a struggling nonprofit organization into a successful one. That’s why more and more they are turning to nonprofit lines of credit to help their business succeed.
Fast nonprofit business financing is the best way to prevent a temporary cash flow issue from turning into a disaster that makes you close your doors permanently. By turning to nonprofit lines of credit, you can ensure that this never happens. Learn more about why more and more nonprofits are doing this to decide if it is right for you.
Why it’s So Hard to Get Nonprofit Lines of Credit
Many nonprofit executive directors see the need for a line of credit for their business. But in the past when they approached commercial banks the answer was usually no.
One key reason for this is that all banks want to see collateral to back up the LOC. At a nonprofit, assets are just not that common.
In short, banks just don’t understand nonprofits. As a result, they make it difficult to obtain 501c3 funding.
Where Are Nonprofits Turning for Lines of Credit
Companies like Financing Solutions (www.financingsolutionsnow.com) are now replacing the commercial bank model. They offer lines of credit to nonprofits without the need for collateral. Most importantly, they are easy to get in place, inexpensive and cost nothing until you use them.
Nonprofits have the same issues that all businesses do. There are delays in funding and spikes in expenses. A line of credit allows a nonprofit to use the line for a very short period of time to handle these funding gaps. This way, you are not left with a shortage of cash while waiting for funds to become available again.
With Financing Solutions, you can get the money you need in as little as three days or less. In fact, they are one of the first companies in the nation to provide financing to nonprofit organizations.
Tips for Turning Your Nonprofit Around
If your nonprofit is faltering, you are not alone. With so many challenges, this is perhaps the most difficult time to run a nonprofit. Nevertheless, there are things you can do to turn it around.
One thing you can do is to strengthen your support network and empower them. These are the diehard fans that will always sustain and champion your cause. Use them to brainstorm and make the tough decisions to carry you through the long term.
You should also prioritize your problems. Every issue cannot get top billing. Take care of the essential challenges, the ones that could kill your organization, first. Put the others on the back burner or delegate them to other staff members.
Perhaps the best thing you can do is to get your financial house in order. The only reason for a nonprofit to close its doors is when the public no longer needs its services. It should not close due to a lack of not for profit funding. Contact Financing Solutions for a line of credit to help you.