Talking with Your Lender: Mark Briggs Offers Insider Advice for Growing Churches

Welcome to the unSeminary podcast. Today we’re talking with Mark Briggs, the Executive Vice President of Ministry Lending at CDF Capital. CDF Capital is dedicated to helping churches solve problems and bridge the financial gap often faced when trying to expand and reach more people. Mark has been with CDF for over 20 years, helping churches finance their dreams and overcome financial barriers. 

What is God calling your church to do in its community? Don’t miss today’s episode, full of coaching on how growing churches can prepare financially for greater impact.

* Start early. // Wherever growing churches find themselves, Mark advises that one of the best things they can do to set themselves up for success is to start thinking about their space and financial needs early on. Even if a church is still portable, if they know they want a permanent location down the road, connecting with a financial partner and seeking advice from experts in the field will help a church to prepare in the years leading up to a launch.

* Transparency and trust. // The importance of transparency and trust between churches and lenders can’t be emphasized enough. Mark explains that CDF Capital wants to help churches have realistic expectations about their expansion plans and what they will take to achieve. They begin by having open conversations about financial health, attendance and growth numbers, savings position, and overall capacity in order to gain a better understanding of where a church stands and what it can afford. Then they recommend where a church needs to be in order to handle the scope they’re considering. Bring in experts, but go into conversations with eyes wide open, understanding that this isn’t going to be an easy process. 

* Be open about struggles. // When a church is honest about their financial struggles and ministry challenges, it allows lenders to provide the best possible guidance and support. If your church is in a difficult season in an area, such as a leadership issue or a declining trend, it may be better to wait to expand until you’re in a better place rather than putting additional pressure on the situation. Find a lender that wants to have a partnership and be transparent so they can really see what is going on and make recommendations.

* Income and debt. // When talking with churches, one of the things CDF Capital looks at is a church’s total amount of debt in relation to their income. Once a church has debt up to four times its annual income, it can put too much pressure on them. Another thing CDF looks at is the expense coverage ratio which looks at all of your income and expenses and then layers on a debt payment. Ideally they would like to see an expense coverage ratio of 105-110% with some buffer. Another thing to consider is what is the percentage of your income that is used for debt? Mark recommends not getting higher than 20-25%. Have conversations with your lender in advance so they can help you wean your budget to a place where it can support your growing facilities.

* Have a conversation now. // CDF Capital has field team members around the country who are available to talk with you about what to consider before going into an expansion project. Contact them for a free consultation to determine what your next steps are.

Learn more about CDF Capital and talk with a member of their field staff. Plus check out the Bonus Deep Dive: Current Best Practices in Operational Reserves for Your Church with Steve Carr...