For Church Financing and Commercial Financing: What to Do When Banks Say No (and Why Do Some Banks Say "Yes" When They Mean "No"?) —
A critical question that should be asked before seeking church financing and business financing: “What should I do if the bank says no?”. AEX has published an article which describes strategies used by AEX Commercial Financing Group to overcome common situations in which banks frequently say no regarding church loans and other commercial loans. We have also written a business finance article, “Why Do Some Banks Say Yes When They Mean No?” which describes how some lenders offer church loans and business loans with terms that they do not expect borrowers to accept. This unfortunate practice produces both confusion and delays for business and church borrowers.
Church Financing is Possibly the Most Difficult Commercial Financing to Arrange
Since churches represent an integral part of most communities, it is clearly desirable to improve church loan financing options if at all possible.
Church financing requires a very specialized type of commercial real estate financing.
Unfortunately there are very few highly-effective providers of church loan programs. There are also a number of problems to be avoided with a church financing program, so choosing an appropriate provider is extremely important to any church considering a church loan program for purchase, refinancing, land acquisition, construction or renovation.
Four Major Church Financing Difficulties
Church properties are unique. Lenders are therefore concerned that if church loan payments are not made in a timely manner and the lender is required to assume ownership of the property, it will be very difficult to find a new owner because of the unique property features.
Lenders frequently want "personal guarantors" for church loans, and this requirement is not appropriate for church financing.
When church financing is obtained, there are frequently unacceptable terms such as very small loans, low loan-to-value (LTV) of 50% to 60%, short-term loans and high interest rates. Most church financing programs cover a limited geographic area such as one County, one State, 2-3 States, etc.
Construction, renovation and land acquisition are even more difficult for churches to finance than purchases or refinancing. As a result, needed repairs are often postponed indefinitely and new churches frequently take many years to become a reality.
AEX Commercial Financing Group Strategies for Avoiding Church Loan Problems
Non-Recourse Loans (instead of requiring personal guarantors).
Long-term loans (up to 30 years).
Low interest rates (usually a maximum of prime plus 1-2%).
Ability to accommodate large church loan needs: Church financing available in amounts from $500,000 to $25 million.
High loan-to-value or LTV (75% to 90% is available).
AEX church loan program available for locations throughout the United States.
AEX church loan programs include new construction, renovation, land acquisition, purchase and refinancing.
AN IMPORTANT NOTE ABOUT
AEX church loan and commercial loan services are designed for helping churches and commercial borrowers and NOT residential mortgage - commercial mortgage brokers. In keeping with this policy, AEX Church Financing and Commercial Mortgage services are available ONLY to a church - business borrower and their accounting - legal - business advisors and are NOT available to residential loan - commercial loan brokers.
Because AEX specializes in difficult church loan and business loan situations, it is important that we have direct communication with the borrower from the very beginning of the church financing - commercial mortgage process. Borrowers who need help with difficult church loan and business financing situations should contact AEX Commercial Financing Group (please see contact information below).
Church Loan Contact Information - Church Financing Solutions
Stephen Bush
Chief Executive Officer
Phone: (937) 780-4030
bush@aexllc.com
PO Box 353, Leesburg OH 45135-0353 USA
Some church financing thoughts from Stephen Bush, Founder and Chief Executive Officer for AEX Commercial Financing Group, "Church financing needs have become much more specialized during the past several years, and the unique commercial mortgage obstacles involved with church loan financing can be difficult to overcome. The AEX Church Loan program covers virtually all church business finance needs such as refinancing, interim financing, land acquisition, purchase, renovation and new construction."
AEX Commercial Financing Group
Stephen Bush is a church financing expert. AEX Commercial Financing Group provides an advanced and successful approach for avoiding church loan problems by using a highly-specialized and individualized church loan financing strategy for each commercial borrower. We provide straightforward and candid church financing advice. Our special niche is working with commercial borrowers and advisors who are openly appreciative of a more conversational approach to church loan solutions.
AEX Commercial Financing Group specializes in quick closings for difficult commercial mortgage loans up to $25 million (up to $3 million on a Stated Income basis) and business cash advances up to $300,000 throughout the United States. Minimum loan size for church financing program is $500,000 (Stated Income is NOT available for church loans).
Copyright 1995-2008 AEX Commercial Financing Group and Stephen Bush.
All rights reserved.
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