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How to Finance Furniture and Equipment When the Bank Turns You Down
By: Philip Dushey

Most churches know that if they need to buy a building, they can usually go to their local bank and get a mortgage with the proper down payment. They will give a mortgage because they are fully secured because they have the property as collateral. What happens when you need to finance the seating, sound system, organ, TV, cameras, or any other equipment a church needs?

Well, you could go to the bank, but they can't lend the money because they do not have any "collateral" and they can't do unsecured loans.

You could have a fundraiser, but most of the parishioners are tired of giving because the church probably had the typical fundraisers like bake sales, picnics, and appeals to raise money for the building.

There is a third choice to finance the equipment. Most churches are not aware they can finance any type of equipment in the church.

Typically, a church can finance anything they need and get a low monthly payment and take up to five years to repay. This type of financing is called "Equipment Leasing." Unlike auto leasing, when all the payments are made, the church will own the equipment outright. This has been a very effective way for churches to keep up-to-date without having to figure out how to raise the money.

One church recently wanted to set up a computer training program for the youth of their community. They needed $50,000 to buy the computers, desks, and other training equipment. The problem was they had difficulty raising the money.

They approached my company, one of the largest companies in the country that specializes in financing equipment for churches, and, in 24 hours, they were approved.

Recently a church with only 75 members was able to finance new pews. This type of financing is starting to get more popular every day. It's good to know that there are other options for financing than your local bank.

Phil Dushey is with Global Financial Services, www.gbtsinc.com.

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