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Financing Solutions Reveals Small Nonprofits Credit Line Utilization Up a Whopping 70%

 Leading Line of Credit Provider Says Small Nonprofits Are Utilizing Their Nonprofit Line Of Credit More Than Ever Before

Boonton, NJ– 2/7/22Leading provider of loans for nonprofits and nonprofit lines of credit,   Financing Solutions, reveals small nonprofits are utilizing their nonprofit line of credit more than ever before. Since October 2021, nonprofits utilizing their line of credit has increased to 70%—the highest amount in the company’s 12-year history.

Prior to the COVID-19 pandemic in early 2020, nonprofit organizations used their nonprofit line of credit each year on the same consistent bases. In 2019, utilization, defined as the amount a credit line used verses what the business is approved for, was at 45% for the first year (e.g., approved $50,000 line of credit, with $22,500 of the line of credit used in the first year)

However, the utilization rate decreased to 20% once COVID-19 was declared a pandemic. Financing Solutions cites the 2 main reasons for the decrease:

  • The Payment Protection Plan (PPP money) from the government was a big help to nonprofits.
  • The donors to nonprofits increased their giving, (that trend continued until late 2021 when the utilization of their line of credit increased to 70%.)

There has also been a very large increase in the number of nonprofits that are setting up their line of credit for emergency purposes. Many small nonprofits never had any options to get a  nonprofit line of credit, and now that it is offered, nonprofits are seeing the tremendous value.

“Nonprofits have always wanted a line of credit however the traditional bank policy required collateral to back up the loan, which most nonprofits simply don’t have. As a result, nonprofits were turned down at every turn and so they stopped exploring this option,” said Stephen Halasnik, Managing Partner of Financing Solutions. “At Financing Solutions, we are privately funded, so we’ve been able to design the line of credit with nonprofits in mind so there is no collateral required, the credit line costs nothing when not being used, the line is inexpensive when used and the line is easy into get in place.”

Nonprofit are getting lines of credit in place because:

  • The longer delay in government reimbursements
  • New optimism about implementing new programs
  • The larger demand now to help those in need

“Our nonprofits line of credit offering is a really beneficial product that was greatly needed in the marketplace to help nonprofits operate smoothly. I can’t tell you how many times our clients are ecstatic that they now have the same finance capability that for-profit companies do,” added Halasnik.

Financing Solutions’ nonprofits line of credit program is designed to be inexpensive and easy to get for small nonprofit businesses. Not only does it allow them to have a great cash back up plan when they need it, but the nonprofits credit line costs nothing to set up, and nothing until used.

Nonprofits interested in learning about nonprofit loans and lines of credit can find out more at

About Financing Solutions

Financing Solutions is a 5-start-rated BBB financing company, providing unsecured small business lines of credit in 47 states to business who’s yearly revenue is under $5 million.