Why Banks Will Not Give Loans to Nonprofits
Banks are supposed to be the place to go for any kind of financial assistance to help improve or grow your business, which is why it is so disappointing that banks will not give loans to nonprofits. There is already an uneven playing field for not for profit companies, so when even banks won’t help, it is like the proverbial slap in the face.
Nonprofit businesses have to do so much with so few resources. When you add the fact that they often also have to contend with government red tape and the numerous 501c3 rules, it’s a wonder they get anything done at all. Nonetheless, they do manage to achieve a lot and help our local and regional communities thrive. Sometimes, the nonprofit business is the one that needs help, but most banks turn their backs on these organizations and refuse to assist in their good deeds.
What Happens When Not for Profit Businesses Apply for Bank Loans
As the owner of a not for profit business, you know that your efforts matter and you are improving the world around you. With so much success in helping your community, you should be able to walk into any bank and request a business loan so that you can help even more people. Unfortunately, this type of success means very little to a traditional lender.
The very nature of not for profit businesses is not to make money. On the other hand, banks only provide business loans when they are reasonably certain they will get their money back.
Not for profits also don’t have many avenues for raising capital. There are government grants and private gifts but these are not considered a reliable source of revenue. Therefore, banks are not eager to give loans to nonprofits. It is basically the same story with just about any lender.
Who Gives Immediate Business Funding to Nonprofits
You will be pleased to learn that the situation for not for profit businesses is not completely dire. There are alternative lenders willing to help with emergency business funding.
A cash advance company, like Financing Solutions (www.fundmypayroll), is the best option for nonprofits to get the instant business financing they need to continue the good work they do. Financing Solutions has a proven track record of helping 501c3 companies obtain fast cash now so they can expand and prosper.
They understand the unique challenges that come with managing a busy not for profit company and are available to help solve your immediate business financing problems. Best of all, they can get your money to you fast.
With Financing Solutions, all it takes to apply is a 15 minute phone call and you can receive an answer regarding your application in less than 24 hours. Once approved, you will have the money in your account the same day.
In addition, there is no long term commitment. Most businesses that use cash advance companies repay the money as soon as they cash flow situation improves, usually in a few weeks or months.
How Can Nonprofits Become More Successful
Running a not for profit business can be stressful. In addition to achieving your admirable mission, you also have to worry about paying bills, making payroll and government delays. These tips might make things easier.
Although you are very busy with day to day issues, it is important to take a bit of time to step back and see the big picture. If you don’t already, carve out an hour or so each week to connect directly with those you help. Remember to use the people around you, whether they are employees or volunteers, to request feedback and have real dialog.
It might be easier to do these things if you adopt the habit of working on only one thing at a time. With so much to do, it is easy to fall into the multitasking trap, trying to do everything at once. The truth is, by operating this way, you will make yourself exhausted and not really accomplish as much as you’d like.
Another way to be more successful is to know where to turn for quick business financing. Using a cash advance company can make at least one aspect of your nonprofit business a little less complicated.