“Shark Tank, a show about billionaire investors who either turn away or fight over investing in hopeful entrepreneurs, can teach us a lot about capital campaigns, and how capital campaigns impact a church’s ability to qualify for financing. If you have watched the show, you have probably noticed that there are two types of entrepreneurs, and that those two types of entrepreneurs have very different experiences in the tank. […]
So what does this have to do with capital campaigns and church financing? Believe it or not, banks look at church financing in a very similar way. Church lending is the anomaly of the banking world. While most businesses center around financial reporting, and are in business to make and keep a profit, churches tend to neglect financial reporting, and try to give away as much of the money that comes in. So, when a church, which typically lacks for Cash on Hand and operates on the slimmest of margins, is trying to go into a construction project, the capital campaign is one of the only things that a bank can look at, understand, and underwrite. Anyone who lends money wants to know how and when they are going to get their money back, and the capital campaign is the best way for a bank to do that.”
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