Securing Financing for Your Church Part 3
Earlier, we discussed Five Typical Church Financing Issues churches and church leadership can face when begin the process of Securing Financing for Your Church. However, the following are Five Practical Steps in Securing Funding for Your Church:
Five Practical Steps in Securing Funding for Your Church
1.) Realistically Assess the Final Value. Some churches will engage the services of a licensed real estate appraiser to realistically assess the “As-Is” as well as the “As-If Complete” final value of the church’s proposed renovation or construction project.
2.) Long. Term. Strategy. Make sure those three words are a part of your vocabulary. The most important phase of any church renovation or construction project is to plan for the future. Church Leadership, assisted by various outside professionals, can assist in determining the church’s long-term facility, land, and renovation needs. The church’s Long-Term Financing is just that, a long period of time that the church will be affected by how the construction project is funded in the beginning.
3.) Develop a Balanced Budget. In order to plan properly, it is important to determine what the church can realistically afford to spend. It is not uncommon for a church to consult with architects and contractors before speaking with a lender. A lender that understands church financing can provide important details, such as how much the church can effectively afford to spend, and what a realistic interest rate on the proposed church loan will be. Input in the planning stages from a reputable church lender may help to avoid costly delays and possibly avoid any disappointment the church may experience during the renovation and construction process.
In the next article, we will discuss the final two of the Five Practical Steps in Securing Funding for Your Church.