So you’ve gone to one bank and credit union after another looking for a line of credit for your nonprofit and they’ve all turned you down. You don’t understand why. Your financials are in great shape. Your board is responsible and qualified. Your management is top-notch. Plus, you’ve been around for forever and a day.
The truth is that it probably isn’t your fault. Banks and credit unions are extremely hesitant to extend lines of credit or loans to nonprofits for a number of reasons. Keep reading to find out why and what you can do about it.
If you’re seeking out a line of credit, you may be surprised to learn that there are a lot of options available to increase cash flow. For most people and firms with relatively good credit (and even those without), there is no shortage of lenders willing to extend credit. Of course, these options are more limited when you’re a nonprofit. But even nonprofits have a couple of choices when it comes to taking out a line of credit.
So, what should you look for when choosing a credit line for non-profit organizations? Continue reading below to find out!