Church Loans Blog
Posted on: April 10, 2008
Over the years, we’ve worked with thousands of churches who needed to finance a building expansion or remodeling project and it’s always exciting to see the Kingdom of God grow and expand. A good church loan can be a great plus for ministry but a poorly structured loan can create a real drag. If your church is looking at taking out a loan, the following suggestions will help you make the best possible decision.
1. Get as much cash as you can before borrowing. After you get the loan, accelerate payments and pay off the debt early.
2. Don’t borrow more than you can afford. Be conservative, careful, and enjoy your sleep.
3. Make sure that the church is behind the project. You want the congregation to be partners, not spectators.
4. Use credit sparingly, but recognize that debt is often useful for financing a growing ministry.
5. Always work with a lender who will help you see how to maximize the financial and ministry results.
Above all, pray until you are confident of God’s will, then step out in faith that God will give direction and provision.