If then you have not been faithful
in the unrighteous wealth, who will entrustto you the
true riches? Luke 16:11 ESV
Plans fail for lack of counsel,butwith many advisers
Prov 15:22 NIV
Suppose one of you wants
to build a tower.
Will he not first sit down and
estimate the costto see if he has enough money to complete it? Luke 14:28 NIV
���This is a very important question for most ministries as they start their loan acquisition project. Each ministry must conduct their own feasibility study to determine whether their expansion or acquisition project even fits within their budget. And that is where we start as we begin our assessment of a ministry.
The truth is that there are many things to consider, but it is possible to get a quick idea of the maximum amount that your ministry might borrow by answering a few questions and making a few calculations. Go ahead and check these out and see what your church can borrow.
We are ministry loan experts. We exist to help ministries increase their financial health as they manage their debt more effectively. Healthy ministries make healthy borrowers. We can help you increase your loan amount to facilitate your ministry growth. We can help you reduce your interest expense. We can help you find a lender even when several lenders have told you "No." We can even help you develop a strategy to get your ministry out of debt completely. And all of this can be done while still focusing dollars and attention on your outreach ministry.
As we begin a partnership with a ministry, we look for the best ways for our two organizations to collaborate to accomplish the ministry’s goals. Results are best when you see us as part of your project team. To ensure the best results, we assume several diverse roles. Those roles are:
Church/Ministry Consultant – It is important that we slow down at the beginning of our partnership to clarify the goals and the priorities of the ministry. In this role, we want to make sure that the solution that we create for the funding of this transaction does not hinder the ministry’s long term plans. This is not a strategy or mission/vision creation project. There are several ministry consultants out there that can provide that service. We just want to be clear on their plans. If this part is done well, then our ultimate funding solution for this transaction should position them well for their future projects.
How can you establish the best relationship with potential lenders? Would you be better off having someone else handle negotiations with your current lender? Do you fully understand what your lender is after?
All loan types - Purchase, Construction, Refinance, Refinance with some cash out.
All loan purposes - Expand facility, Reduce interest rate, Extend term, Change lenders.
All situations - Loans are available even if other lenders have told you "No", even if you recently refinanced, even if you are new church, available with and without guarantors.
"A unique strategy developed to help a debtor manage their debt. This strategy is usually developed and implemented by an outside company or organization on behalf of the debtor, usually because the debtor is unable to sufficiently manage their debt on their own, due to lack of knowledge or because they are overwhelmed by the amount of debt."
Have you ever considered the difference between discretionary and non-discretionary expenses? Would you ever include Reserves or Debt Reduction as line items on your annual budget? How do you plan for building repairs and equipment purchases?
Is your staff size a help or hindrance to your current growth stage? What mix of volunteers and staff would be best for you? How will you manage the change required in the future? What role will your board play in the development of your ministry? What policies, guidelines, or processes should we change to improve our
You can find the definition at the left at Investorwords.com. We can help you develop a strategy to manage your debt. That could include acquiring new debt, reducing your costs, or even accelerating your payoff. That strategy could also address things like carving out some room in your current budget to make it a little more comfortable to make your loan payment, or evaluating your ministry assets to determine their value and adequacy relative to your debt. It could even include focusing on organizational issues or on your improving lender relationship.
We believe that this definition comes up a little short as it
Is the value of your assets sufficient to collateralize your target/existing loan? What is the best use of non-ministry-essential assets? Are there ways to use your assets to increase revenue and/or ministry impact?
identifies when an outside strategist might be helpful. We believe that we bring value in situations where the ministry leadership team has lending knowledge, but lacks current market knowledge. Additionally, we bring value not just when a ministry is overwhelmed by the debt, but also when they are simply overwhelmed by the ministry projects that they are already working on. They are gifted specialists responsible for ministry results. Managing a loan acquisition project or pursuing a refinance can be distracting to everything else that they have going on.
The big change for most ministries as they start to make debt management a priority is the shift to doing things intentionally. Planning for a potential shortfall in revenue is both Biblical and prudent. And lenders (potential and existing) like it when you plan intentionally. Here are a few of the service areas that we can help with: