Restructuring Debt May Improve Cash Flow

Trustees and Finance committees have the responsibility to act in the long-term financial interests of the church. In this challenging COVID-19 environment, church leadership must focus on maintaining adequate cash flows and preserving cash balances for the future. To cope with rising costs and sometimes challenging giving trends, it may make sense for leadership to seek ways to restructure the church’s debt.

Recently Old Bridge United Methodist Church sought help from DevCo to improve its cash flow position.

“Refinancing our mortgage with the VA United Methodist Development Company allowed us to reduce our mortgage principal payments and then reapply nearly 10% of our ‘cash’ budget toward the local missions and ministries of the church. We are very thankful for the opportunity to realign our finances with our mission as a church in this way.” (Pastor Kevin Phillips, Executive Director, Old Bridge UMC).

Since its inception in 1987, this church has created a legacy of tremendously rich history, and this restructure helps ensure that it will continue.

Your church leadership may be seeking ways to improve cash flow through similar financial decisions. The lending team at Virginia United Methodist Development Company, LLC (DevCo) can help your church refinance an existing mortgage from another financial institution. By offering an amortization schedule of up to thirty years, DevCo could substantially reduce your monthly debt obligation, while allowing the church to preserve cash flow for ministries and community programs. If you’d like to discuss refinancing, please contact us at DevCo. We are always willing and available to support leadership’s ability to improve its financial position while creating growing opportunities for effective church sustainability.

Again, we are “Methodists Helping Methodists!”

Authors: Randy Shelton and Bo Bowden