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  • Philip Bacon

Finance for places of worship

Updated: Aug 10, 2023

When sourcing finance for places of worship and faith-based locations can be difficult. Many religious groups do find their income through donations and charity events. They work with charities and businesses that aim to improve the well-being of their members and the general community, so funding is often sourced in the hopes to continue the work they are doing.

However, sometimes donation alone is not enough to cover the costs of running a religious organisation. And, as donations are a main source of cash flow, some lenders may be hesitant to offer the support they need.


The main requirement for places of worship to seek out additional finance is for real estate. Places of worship usually need a place to worship. So additional cashflow is needed for either the purchase of a new building or just renovating of current buildings. Solutions for shorter-term projects can include Bridging Finance and Development Finance.




Bridging Finance


Short-term property finance with faster completion compared to traditional mortgage finance; the ‘Exit’ from the loan is commonly the sale of the asset, or in this case it could be long-term re-financing.


Multiple uses: auction purchases / requirement to purchase quickly / refurbishment and development periods / releasing equity to raise working capital.


Development Finance


Finance terms available vary according to the initial value of the property/land, the costs and fees of the development work, the projected value of the completed development and your previous experience of development. Variants include:


  • Light Refurbishment – Cosmetic refurbishment with no structural changes.

  • Heavy Refurbishment – Contains cosmetic work, but usually renovation work including structural changes or changes to the footprint of the property.

  • Ground Up Development – Commonly starts from vacant land, can include demolition and rebuild projects.


What we can do to help


However, there are finance options and even banks who specialise in this type of lending. With an extensive team of commercial finance experts, we offer you access to one of the most exclusive networks of lenders for places of worship. We can also help with longer term funding for places of worship in the form of a commercial mortgage.


Knights Row are a leading commercial finance and property finance broker, able to find you the best rate for your business.


To find out more, contact us on 0333 339 5905 or make an enquiry, today.

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