There are many types of financing or loan packages available for non-profit organizations such as churches and one of these is the church van financing package or church van loans. Just like any organization, churches need to obtain certain necessities such as a vehicle in order for it to function efficiently. Church vans are usually used in various community programs which different congregations annually undertake. However, there are instances where churches may not be able to afford to purchase some vehicle types because of a limited fund.
Church Van Financing takes some Time
Although there are some who might think otherwise, nearly everyone knows that churches do not have an unlimited supply of funds. In fact, most of them can barely meet the required monthly utility obligations like light, water and telephone. This is perfectly understandable as most churches rely only on the generosity of their members. In a way, the income of the majority of churches is largely a product of the financial capacity of their members. While it is true that some of them may hold fundraisers for some projects, such as buying a church van, the money raised from such events may not cover the entire financial requirement needed to purchase the vehicle.
Vans make it easier to get your congregation around!
The good news is that churches can always apply for a church van financing in order for it to be one step closer to its dream of obtaining a vehicle for the use of its congregation. There are many private lenders offering church van loans. Many of them offer standard amortization period just like those being offered to regular borrowers. Through church van loans, congregation officials need not take a sizable portion of the members’ contributions just to buy a van. All it needs to do is to make a down payment and pay the required monthly amortization over a stipulated period.
However, congregation officials need to know that the terms involved in a church van financing package may be a little bit different compared to other loans. For starters, church van loans have a higher interest rate. This is perhaps due to the fact that private lenders consider it a high risk loan because churches do not have a stable income compared to business organizations. Aside from this, private lenders attach major requirements that churches need to submit before their application for church van financing will be considered. Two of these requirements are:
- Personal guarantee from one of the church members
- Recent financial statement certified by an accountant
There are also other private lenders who may require the church to submit supplementary documents when applying for a church van financing. These are:
- The proof of the church’s status as a non-profit organization
- A copy of its bylaws
- The names and professions of church board members, as well as their addresses
- The resume of the senior minister or pastor containing important information like his age and the salary or stipend that he receives.
- The number of churchgoing members as well as their usual monetary contribution when they attend the service
The best thing about church van loans is that the requirements needed are not that hard to obtain. In fact, most of the document needed by private lenders may already be in the possession of the church. While it is true that the monthly amortization of the church van financing package of some private lenders may include a higher interest rate, it is certainly better than having to raise the entire amount to purchase the needed vehicle.