While not all financial institutions are created equal, most focus on similar facts throughout the loan application review process. When you’re applying for a church loan or church financing, you’ll need to know what documentation and projections the bank will require to help you get approved. After all, securing church loans can be challenging. Whether your congregation is just a few years old or you’re looking to expand an existing church building, the process of getting approved is rigorous.

Credit History

When you apply for a church loan, the lender will want to review the church’s credit history. While you can still obtain a church loan with negative items, it may be more difficult to receive a favorable interest rate with those negative items present.


If you’re looking for church financing that uses a secured loan, you must have collateral to back the loan. Collateral is the property you’re using to secure your church financing. You will want to not only ensure you have collateral, but also be confident you can meet the terms of your loan so that you do not lose your collateral.
Your Collateral Options

If your commercial church loan requires collateral, you will need an asset that is long-term. Short-term assets like account receivables or inventory won’t cover the duration of your loan and are best suited for short-term credit options. For most churches, collateral is their congregation’s meeting house.

Cash Flow

A church’s cash flow is crucial for obtaining a church mortgage or general financing. Cash flow should be positive and show the financial institution that your church is responsible with its money. Your cash flow statements should show that you take in more than you spend and you should be able to show in detail how your money is spent. In addition, your cash flow should be more than adequate to pay for the terms associated with your new church loan.

Believe it or not, a church’s mission matters to financial institutions. You must prove to the bank that you have a strong congregation that tithes, contributes, shows up for services and can help your church pay for its expenses. You will need to provide a detailed mission statement and show the financial institution your church’s core values and how you will gain followers.
While church financing isn’t impossible to obtain, it requires the assistance of those who understand how church mortgages and financing works.