Lending Options for Nonprofits

Although traditional businesses and nonprofits are typically assessed through different lenses, they have many of the same needs. The largest of which is to fund their day-to-day expenses. Just like for-profit businesses, these organizations also have rent, payroll, and office expenses in addition to the cost of running their programs.

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Whether you are looking to finance new programming, a big marketing project, or a yearly fundraising event, Bellwether Funding understands the unique needs of today’s nonprofits, and they are here to help you secure the funding you need to make your organization thrive. Here is a deeper dive into the world of lending for nonprofits, and how they can take your organization to the next level.

Major Financial Needs of Nonprofits

Program Costs- These are the costs associated with advancing the organization’s mission.

Staffing- Many people have a somewhat distorted view of charities and nonprofits. The reality is that paid staff is an absolute necessity in order for an organization to execute its mission and scale. This can be a major hurdle.

Office expenses and rent- Sometimes the costs of rent and office equipment can be the most cumbersome of all.

Marketing- Online visibility and powerful storytelling are more important than ever to engage your donors and community.

Fundraising- It is true that sometimes you have to spend money to make money. In my experience, some of the most successful fundraising events, one of which is held at the Ritz Carlton in Bachelor Gulch, Colorado, came with an enormous price tag. But they managed to put that money spent to good use, which in turn raised a boatload of money for the organization.

Types of Loans Available for Nonprofits

Traditional Bank Loans

Offer long terms and relatively low rates but only lend to the most creditworthy with collateral.

Equipment Leasing

If a nonprofit needs certain types of equipment for their activities but does not wish to keep them permanently, they have the option to lease the equipment through the lender. With this option, the lender purchases the equipment for the organization, then leases it for an agreed upon timeframe. Equipment leasing comes with higher fees than traditional business loans.

Asset-Based Nonprofit Loans

These loans are offered to those who are unable to secure traditional loans through a bank.

The borrower needs to have assets available as collateral such as real estate or inventory. Sometimes securities are also available to offer to the lender. If the organization has a sizable investment portfolio, that could be used to secure the loan. With this option, the borrower can still reap the benefits of the portfolio while the loan is being paid back. This can be a great option, and Bellwether Funding is an industry leader in offering asset-based loans.

While being a nonprofit organization does come with a distinct set of challenges, there are still a wide variety of options when it comes to attaining long-term funding and financial security. Take the time to give Bellwether Funding a call today so that you can stop worrying about money, and spend more time furthering your noble mission.