FINANCIAL DIFFICULTIES

Almost all churches have to go through the need to finance commercial real estate. Real estate real and substantial sources of funding include: regional banks, private investors, insurance companies, savings and loan institutions and mortgage banks. First, let us touch the barriers to access to the Church of the mortgage and finance, and process. The main church of the financing difficulties: (1) is flat church unique, so for this reason, lenders are very worried because the loan if there is no specified deadline for payment is the problem, it makes for the lender. You need the possession of the property. Because of the unique properties of functions, it will not be easy access to the new owner. (2) The church, in order to obtain credit, loans often require a specific reference quantity is the sale of church property, and then observe the needs of the complex in advance of the “personal security.” (3) If the church funding needs, there are many reach it as offensive. Such as: micro-loans, loan low value of 50% (mortgage) of 60%, while the short-term loans and high interest rates. By this point, the church received many ways, many face financial difficulties. (4) Over procurement and / or re-financing, financing of churches and church loans church construction loans for the rehabilitation and the acquisition of land is a complex process. It was therefore in need of repair, for an indefinite number of new churches need to delay to consider a reality. Has been issued for the possible solutions to the problems mentioned above: (1) high LTV: high LTV 75% to 85% of people will be able to produce about 15% of the actual amount of 25% will be used to pay the purpose or use of non-financial part of the refinancing. (2) long-term loans: In order to ensure successful financing of the church, but as a short-term, should the church a long-term financing of the island of E. coli, at least the period of 30 years. (3) non-recourse loan: not ready, not the people to extract, as a guarantor for a non-traditional church loans. Instead of using this way, the church will no longer be guaranteed depending on the individual church loans. (4) The number of loans: the ability to absorb large church loan, in more than 500,000 yuan. This will more than convince the church to complete a majority of commercial financing, rather than pass through many phases. (5) low interest rates: The church is accused of scraping the sky than the actual needs of the interest rate. Church funds to pay, you can significantly reduce, limit the payment to the prime rate plus 1% or below this level. Therefore, the long-term loan to the church and the general decline in cash flow is paid to the great cathedral would be improved. . Church financing of capital for the funding of religious Griffin sector loans, no personal guarantees, favorable prices and good conditions for the financing of the church and loans.