Think way ahead, be strategic about managing cash flow, and understand the power of properly structured debt as a financial tool to achieve nonprofit and for-profit business goals.
When to Consider Debt
- It’s more efficient and cost effective than fundraising (or used in conjunction with fundraising).
- You have a temporary cash flow gap from normal operations.
- It’s time to expand a program or purchase assets.
When NOT to Consider Debt
- You have cash flow shortfalls with no identifiable revenue source.
- There are structural problems that won’t be corrected with debt.
- Debt won’t help you build your organization.
Preparing to Borrow
- Understand your financial statements.
- Look ahead for goals you’re trying to achieve.
- Don’t wait until it’s a crisis.
- Get your paperwork in order: Historical financial statements, budget and cash flow projections, and organizational documents
- Know why you’re borrowing.
- Know how you will pay the loan back.
Why Borrow from GPAz?
- GPAz reinvests in other nonprofits in the community.
- GPAz may make loan even if you don’t have collateral.
- GPAz can be more adaptable to nonprofit’s needs.
- GPAz provides technical assistance (advice/coaching).
Questions? Give us a call at: (520)382-9218
