Loans for Nonprofit OrganizationsBy Bryan in Business
Similar to any type of business or company, your nonprofit organizations require lots of time, effort, and money to stay up and running with maximum efficiency. However, since nonprofits operate differently than other (for profit) businesses, their needs of these particular organizations are also often slightly different.
Do have an unexpected expense or financial emergency to deal with? Check this out.
If you’re running a nonprofit organization and are interested in seeking out additional funding to help grow and improve your charitable reach, we have the options you need.
Types of Nonprofits Eligible for Funding
Since nonprofits are not your typical type of business, you may be wondering if your organization will even qualify for funding. Don’t worry, once you’ve found the right lending source, almost any type of nonprofit can secure business financing, including but certainly not limited to:
- Housing programs and developments
- Educational facilities and programs
- Environmental agencies and resources
- Credit and debt counselling organizations
- First Nation government organizations
- Labour unions
- Sports-and-recreation groups
- Social services
What Type of Funding is Available for Nonprofits?
Once the appropriate lending source is found, most nonprofits can easily secure the same types of funding and services as any regular businesses, such as:
- Business banking
- Leasing and financing
- Micro Financing
- Business credit cards and lines of credit
- Impact business development
- Real estate loans
- Wealth management
- Capacity building
- Bridge loans
To see some of Loans Canada’s business loan and financing options, click here.
What Can You Use Your Business Financing For?
When your nonprofit organization is backed by the right kind of business financing, there are multiple ways you can put that financing to good use. Here are just a few areas where some extra financial attention could be helpful:
- Covering your employees’ wages/salaries
- Buying or leasing equipment (computers, machinery, appliances, etc.)
- Mortgaging or leasing your workspace
- Buying furniture for your workspace (desks, lighting, tables, chairs, etc.)
- Moving to a newer or larger workspace
- Opening, furnishing, and maintaining a second location
- Adding renovations or performing general maintenance to your workspace
- Paying your utility, internet, and phone bills
- Consolidating any outstanding debts your organization racks up
- Buying or leasing any company vehicles (delivery vans, shuttle buses, etc.)
- Fueling, repairing, and maintaining vehicles
Trying to consolidate your business credit card debt? Take a look at this.
Will a Lender Want to Work With My Nonprofit?
Nonprofits like yours are out to make a difference in the world, rather than earn a profit. Unfortunately, that can make it more difficult for your organization to secure funding from many types of lending sources. However, even though it’s rarer, there are plenty of lenders out there who are definitely willing to approve you for business financing, including but not limited to:
- Credit unions
- Alternative companies
- Privately owned companies
As long as you have an effective business plan, know exactly what you’re going to use the money for and that you can afford to pay back your lender in full by the scheduled due date, you should have no problem being eligible for certain types of specialty financing programs.
What’s the difference between a bank and a credit union? Find out here.
Working With Loans Canada
If you’ve been having trouble finding appropriate business financing for your nonprofit organization, you’ve come to the right place. Loans Canada can help connect you with the right specialized lenders in your area. Fill out an application today!