Why a Nonprofit Organization Doesn’t Want a Nonprofit Loan from a Bank
Get a Line of Credit Instead
Often, it doesn’t matter how you got here, it only matters where you are going and a nonprofit loan may help you get there. But is that what your nonprofit organization really needs? You may be happy to learn that you do have other options.
The Importance of a Nonprofit Loan
You cannot postpone your nonprofit’s mission and services. Nonprofit payroll is another big factor that you cannot forget or defer.
State and IRS regulations actually make it illegal to miss or delay your payroll. If you do, you will incur severe fines and penalties. Not to mention the additional scrutiny you will be under for several years.
In addition, people are counting on you to fulfill your mission. Programs still have to start on time and vendors still expect you to pay your bills. None of these people care that a donation didn’t arrive on time or that your government grant money is late.
With the right type of 501c3 loan, you don’t have to worry about these issues. Unfortunately, obtaining a loan from a bank is extremely difficult.
Where Can You Go for an Alternative to a Nonprofit Loan?
Frankly, the bank doesn’t care that your costs are rising while government support is dwindling. The fact that your nonprofit struggles with for profit businesses that can pay more to retain the best and brightest employees are not something they care about. Their only concerns are their shareholders, risk and profits. Fortunately, there is a better solution.
Financing Solutions (www.financingsolutionsnow.com) has been the number one provider for nonprofit lines of credit in the United States for many years. Over that time, they have come to understand a lot about the nonprofit experience. For instance, they know that 90 percent of the reason why a nonprofit needs a LOC is to make payroll when payments are delayed.
A Financing Solutions line of credit is what a nonprofit wants instead of a nonprofit loan. Getting a nonprofit loan from a bank requires 100 percent collateral to back up the loan. Their LOC requires no personal collateral. Also, if your nonprofit closes down due to normal business management shortfalls, no one is left personally responsible (except in cases of fraud).
The Financing Solutions application is quick and easy to understand. It takes only two minutes to complete and you get a written, no obligation quote without a credit check.
More importantly, a Financing Solutions LOC costs nothing until you actually use it. Then, when you do need it, it is very inexpensive and easy to repay. So instead of a nonprofit loan, look to a line of credit instead.
Financing Solutions has hundreds of happy clients who appreciate the fact that they have an LOC in place. This is the number one reason why the Better Business Bureau has given them an A+ and five star rating.