Collateral Matters

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CLASSIC ARTICLE - For many in the nonprofit sector, borrowing carries with it an undeserved stigma-it's seen as a sign of poor management. Yet most for-profit businesses would flounder if they couldn't borrow to stabilize cash flow. Nonprofit consultant Richard Linzer explains how organizations can secure the collateral necessary to obtain their own line of credit. He also shows how two nonprofits have effectively used credit-based strategies to stave off fiscal crises and gain a solid financial footing.