Church Equipment Leasing | Camera Financing | Media Finance

Finding the right financing for church equipment isn't as hard as it might seem. Although the concept of equipment leasing might be new for some churches, U.S. businesses of all sizes have been using this powerful financial tool for years. In many cases, church equipment leases are the fastest and easiest way to acquire the equipment your church needs.

Church Equipment Leases

Church equipment leases are essentially loans where a lender/lessor purchases the equipment, and then rents it back to the lessee at fixed monthly payments, for a predetermined number of months. Church equipment leases have become a popular form of church finance over the last 10-years, due in part to the increased role of broadcast technology, digital projection/display, and digital sound/video in evangelism.  Church equipment leases allow this high-tech equipment to be easily upgraded down-the-road, with minimal upfront costs. The flexibility shown in lease terms allows a church to better plan for future growth and expansion; fixed monthly payments can be structured to fit virtually ANY cash-flow or budgetary need.

Church Loans

For larger projects, where equipment needs are only a part of the complete financing request, church loans might be a better avenue. Many times, larger projects require progress payments to be made to builders, vendors, and other church suppliers. A church loan can provide the flexibility to pay these vendors as work is completed. A church loan can be structured to include land purchases, building/construction costs, and equipment/furnishings. Church loans are also available to meet steeple finance and church broadcast needs.

Application Process- For church equipment leases under $100k, all that is typically needed to begin the credit process is a simple one-page application. The application names church management and will typically require past lease/loan references as well as current trade references. While your church may not have existing equipment leases, you should be sure to include any mortgages or lines-of-credit you may have with other lending institutions. These term-debt obligations help build commercial credit and are used as a "comp" or comparable credit rating.

In addition to a credit application, it is common practice to have a "religious organization questionnaire" filled out by the church seeking financing. The questionnaire gives the lender a "snapshot" of the church's structure, average collections, affiliations, and congregation size. The questionnaire briefly touches on average collections and current church budget.

For larger church equipment leases and church loan requests:

Larger church equipment leases (over $100k) and church loan applications will typically require a bit more information, so it might be a good idea to start gathering the required financial information ahead of time. Depending on the details of the loan, the lender may request copies of the last 2 or 3-years of financial statements on your church (tax returns if required in your state), as well as current interim financial statements. The purpose of requesting the additional information is to allow the lender to better evaluate a church's current cash flow situation, not just look at the current budget or average collections.

Don't Forget:

● Most lenders and equipment leasing companies will request copies of your 3 most recent months of business banking statements. Be sure and include checking, savings, and any money market/sweep accounts your church might have. This is used to establish average daily balances.

● In situations where less established churches (less than 10-years old) are applying for financing, the Pastor may be required to provide his personal guaranty to secure the lease/loan.

● IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS! Buyer beware... be wary of "pre-approval" offers from banks and lenders. Many times these are just tactics to get you to fill out a credit application and collect a commitment fee. Except on large, complicated requests, reputable lenders will not ask for deposit monies until approval terms have been laid out. NEVER sign a lease/loan proposal or give a deposit until ALL terms and conditions have been laid out in plain English. In the event the lease/loan cannot be completed as outlined, any and all commitment fees (minus earned doc fees) should be returned promptly by the lender. Don't be afraid to ask for this in writing!

● Vendor leasing options are available for equipment vendors/manufacturers in the United States and Canada.