VIDEO PODCAST: Using Lines of Credit to Address Cash Flow Issues [SUBSCRIBERS-ONLY]
Ben and Mike discuss lines of credit and other forms of debt, whether a line of credit can be an appropriate tool to help nonprofit organizations manage cash flow, some issues to consider before taking out a line of credit, and the importance of addressing the root causes of an organization's cash flow shortfall.
CHAPTERS:
00:00 - Intro
01:28 - The definition of a line of credit and its different terms, fees, and variations
05:48 - Distinguishing between a line of credit and a term loan
06:57 - The origins of lines of credit and its intended purpose
08:01 - The downsides of using a line of credit
08:57 - The importance of recognizing and addressing the root causes of cash flow issues
12:05 - When lines of credit can be appropriate and how operating reserves can be an alternative to using debt
17:13 - Examples of collateral that nonprofits use when incurring debt and potential pitfalls
20:45 - Other issues and considerations raised by using lines of credit
24:34 - Alternatives and final thoughts
FURTHER READING:
To Be Sustainable, Nonprofits Need to Have Profits
VIDEO PODCAST: How and Why to Do Regular Financial Health Assessments for Your Organization
