Christian Business Loan

Christian business loans may be the financial boost for any new and growing business or ministry. This financial resource could fund an innovative and marketable idea to launch a company. However, businessmen need to think carefully about the decision to borrow and pray. "The counsel of the LORD standeth for ever, the thoughts of his heart to all generations" (Psalm 33:11). It's important to look to God and be informed so a company can start on and stay on the right foot financially.

A lending institution granting money which must be repaid to Christian companies is a Christian business loan. Most lending institutions do not discriminate against Christian or non-Christian company owners/borrowers. They are more interested in the company's ability to repay the amount borrowed. In order to be considered for lending, the company owner will need to provide certain types of documentation to prove their ability to repay the amount. Typically, the lending institution will run credit checks, employment verification, current and past tax returns information, and perform reference checks on the borrower.

Once the borrower's personal information has been approved the lending institutions will want to see a thorough company plan, marketing ideas, fundraising plans, etc. When applying for a Christian business loan, the borrower will need to provide a three-year projected cash flow for their company, a budget, and any current income the company is acquiring. In most cases the lending institutions will require a down payment on the balance.

Lending institutions usually provide two options to the borrower. The Christian business loan can come in the form of a line of credit or a direct loan. When a bank issues a line of credit, they create a checking account for the borrower. The borrowers then can withdrawal money as they need it and only have to pay interest on the money used. The other type of Christian business loans is a direct loan where the lending institution sets up a monthly payment plan and issues the total amount at one time.

Obtaining Christian business loans maybe a complicated process, however, there are many different types of assistance a company owner can utilize. Private and public organizations provide assistance with writing businesses plans or creating marketing strategies. Some lending institutions have loan programs for women or minority business owners. This might be a program that some Christian business owner could be a part of in order to obtain a Christian business loan. In order to successfully obtain lending, businessmen should educate themselves, plan their company, and contact a reputable lending institution.







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