Difficult Church Loan and Business Finance Solutions
This article will offer an overview of key church loan difficulties and practical church financing solutions. Even with appropriate business finance and commercial mortgage strategies, this specialized commercial real estate loan is typically difficult to arrange.
Church loans often suffer from several problems,Guest Posting and as a result specialized business finance strategies are required. Typical church financing will involve multiple difficulties.
Church financing is possibly the most difficult commercial mortgage to arrange. Since churches represent an integral part of most communities, it is clearly desirable to improve church loan options if at all possible. In almost all cases financing will require a very specialized commercial real estate loan that is typically not widely available.
Churches are certainly not typical business church organizations, but churches nevertheless have very real and substantial business loan needs. This article will provide an overview of four primary church financing difficulties followed by a discussion of six practical church loan solutions.
Four Major Church Financing and Business Finance Difficulties –
Before addressing possible solutions for the most common church loan needs, it is important to discuss the typical barriers to obtaining appropriate financing. Historically church financing has been difficult to arrange for several reasons:
(1) Church Loan Obstacle Number One: Church properties are unique. Lenders are therefore concerned that if commercial loan payments are not made in a timely manner and the lender is required to assume ownership of the property, it will be very difficult to find a new owner because of the unique property features.
(2) Church Financing Difficulty Number Two: Lenders frequently want personal guarantors for church loans, and this requirement is not appropriate for church financing. The financial structure of churches simply does not lend itself to a traditional lender/guarantor approach. But most lenders are uncomfortable with the potential lack of guarantors (especially because of the previous observation about the difficulty of reselling the church property should it become necessary).
As a result, it is common to find that church financing has been obtained only after one or more
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