All church expansion projects require a funding strategy. Typical sources of funds are:
Cash on hand
Capital Campaign pledges
Sale of assets
Churches should limit borrowing to an amount that allows the church to remain healthy and able to fund ministry efforts during the repayment period. However, most construction projects require some type of financing.
Lending to churches has changed as financial institutions realized that churches are good at repaying mortgages. This has made a number of lending options available to churches that were previously limited to for-profit entities.
Healthy Church CFO specializes in writing comprehensive and detailed Loan Requests for churches to utilize in soliciting financing proposals from multiple lenders. Rather than employing the very expensive services of a mortgage broker, we prepare the same type of loan package that a broker would assemble. The church can use the Loan Request Package to communicate its unique story to prospective lenders in its own words. Receiving multiple financing offers means superior terms for the Church.
Many churches have a volunteer or staff member with the ability to assimilate and compare multiple lending offers, but without the time or experience to write and assemble the Loan Request. Why pay for a broker when all you need is the Loan Request package? In the event your church does not have a person experienced in negotiating with lenders, Healthy Church CFO can assist in actually soliciting finance proposals and negotiating loan terms beneficial to the church.
This service has been very successfully utilized by a number of clients and has been lauded by lenders as ‘the best loan request package’ ever presented for a real estate loan. Lenders are more likely to offer advantageous loan terms when the church is viewed in such a positive manner and the project is explained in depth with an emphasis on how it will benefit the church.
Here is what Pastor Kevin Lee from New Life Fellowship in Hopkinsville, KY told us:
“the primary thing I wanted to communicate is what we've heard from each bank. One of the bank presidents put it this way, "I've never seen a more complete and comprehensive loan proposal--certainly more complete than any church proposal, but honestly more complete than any loan package request."
At each of our meetings there was significant discussion surrounding the incredible way the proposal was put together and the depth of detail.
It made me really proud, in a way, that our church made such a strong impression on the banking community. You represented us well. You represented the Church well. And when you make the Bride of Christ look good--well, that means you represented the Lord well.”