Unique Benefits
Vision Enabled
A Different View
When AGFS Loan Solutions looks at your organization, we look through the lens of ministry. Every ministry plan requires evaluation and AG Financial Solutions uses the right tools for the job. We understand churches and how they are structured. A ministry differs greatly from a business, yet they both benefit from good business processes. Knowing the difference is key to a positive partnership. No other institution has the history and experience in lending to churches like AG Financial Solutions.
A Different Approach
Traditionally, a bank often encourages organizations to borrow the largest amount for the longest period of time. That’s their bottom line. Our bottom line is very different. We encourage borrowing as little as possible, for as short a time as possible. Churches exhibiting healthy stewardship are empowered to do more ministry. Debt should only be a tool.
A Different Process
When evaluating a loan application, AGFS Loan Solutions does not just look at the church’s financial bottom line. We look at a variety of factors, including three key financial ratios. These ratios are designed to provide an accurate picture of the church’s ability to service a loan:
- Debt Service Ratio. Annual debt service (all monthly payments) as a percentage of annual operating income (regular tithes and offerings only).
- Collateral Ratio, also known as Loan to Value (LTV). Amount of the loan divided by the value of all buildings and land.
- Debt + Salaries to Income Ratio. Amount of debt payments and staff salaries as a percentage of the annual operating income (regular tithes and offerings only).
- What others call RISK, we call VISION.