Tips and Tricks for Successful Church Financing

At one time or another, most churches find themselves in need of financing for some can project which has to be carried out, such as improvements, renovations, or equipment purchases. When major funding for such projects is needed, there are three main options available which might satisfy the need, those being bonds, mortgages, and unsecured loans. The financing method you choose for your church will depend on how much money is needed, how long a repayment period is preferred, and the nature of the project itself.

Fixed-rate bonds for churches

Bonds are usually issued in amounts of $250, $1000, and multiples of these two figures. In this financing option, the church would issue a bond, and the buyer of the bond actually serves as the lender. The bond would pay regular dividends on the principle, until the maturity date is reached. At th e time of maturity, the original amount of the bond would be repaid to the owner, along with the interest which remains unpaid, and the bond is then officially canceled. One of the real advantages to this option is that actual church members can purchase the bonds, and support their own church by doing so.

Church mortgages

Churches which have significant assets such as property or buildings, can mortgage these to raise funds for whatever project requires them. This kind of mortgage is an agreement which applies a temporary lien on the church property or asset, which serves as a kind of security for a loan which is extended by either a private or public lender. The most common types of church mortgages are long-term fixed-rate mortgages and short-term variable-rate mortgages, both of which are usually in amounts over $100,000.

Unsecured church loans

These are typically used for smaller projects, for instance the purchase of minor equipment, or for renovations or remodeling projects that are not considered extensive. A promissory note will be signed between the lending party and the church, and this note will outline the details of the loan, specifying repayment terms and the conclusion date. Unsecured loans are generally in amounts less than $100,000 but more than $20,000, and they are generally easier to arrange than formal mortgages.

Financing for your organization

If you need financing for your organization, contact us at Ace4Growth when it’s convenient for you. Our financial specialists will discuss some options with you that may be helpful in funding your operation, and our business-friendly terms are highly competitive in the market. If church financing is your basic need, we will be glad to work with you, to help accomplish your goals and objectives.

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