BondFinancing

Bonds are IOU's or notes sold to interested investors. The seller (bond company) promises to make regular interest payments to the investor, and to repay the principle value by a certain date.

Bond financing will definitely remain a strong option for churches, especially given the economic climate.

Originally, church bonds were sold only to church members. But some churches didn't have enough members who were interested or financially strong enough to purchase all the bonds needed to fully fund a project.

Now with more investors willing to participate, bond underwriters are able to provide financing up to and in some cases over $25 million. These large projects put churches in a position of carrying substantial debt loads for many years into the future, which makes bond financing attractive due to the long-term fixed rate and minimal loan covenants. The financing structures now regularly provide 20-25 year terms.

Over the past two years, many investors are recognizing that the church bonds is a good investment being considered a fixed income investment.

The church bond financing continues to be a viable long-term option for growing ministries. Bonds also allow church members to participate in the financing of their projects. For churches with large projects, or whose members will not be able to fully fund their project, these projects can also be financed with outside investors.

The future looks bright for financing ministries. Let Church Resource Company secure your Church Financing for you.