Churches, just like businesses, must bring in money in order to stay operational. Typically, the tithes and regular giving from congregation members is enough to cover a church’s operational costs. However, even when members tithe regularly, a church may sometimes need to borrow money for various special projects.
Choose a Funding Source
A church can seek a traditional bank loan or turn to commercial bank that offers financial services geared toward churches. It can also utilize the services of a loan broker company that specializes in church loans. A loan broker does all the legwork to find the loans that best fit a church’s needs and credit.
Prepare Financial Documents
No matter what type of lender the church chooses, it will need to put together financial documents to submit with the loan application. Most lenders want at least three years’ worth of income and expense statements. Some lenders also want to see a balance sheet that shows current assets and debts. After putting together the needed financial documents, the church can submit them with the loan application and wait to hear if the lender approves the loan.