Church equipment leasing has gained popularity in recent years, due in part to the increased role that professional grade audio, video, broadcast, and projection technologies have played in evangelism. Equipment leasing has long been the preferred financial tool for professional broadcasters and entertainment industry professionals looking to acquire equipment, but it seems as if churches are just now starting to become familiar with this powerful financial tool.

Leasing church equipment offers quite a bit of flexibility not shown with traditional loans and credit lines. Fore example, if a Pastor were to go to his local bank seeking a loan to cover $50k worth of new sound and equipment, he’d be subject to a lengthy credit review process right off the bat. The majority of the time, the Pastor’s personal guaranty would be required to secure the loan, no matter how well established the church was. The local bank might also require the Pastor to open a business checking account for his church. There, he must be sure and keep a $10k “compensating balance” to avoid additional charges on his loan or even an interest rate hike! Did we mention the $5k deposit he already had to give to cover the 10% needed to initiate the loan? As you can see, the more traditional approach to equipment financing isn’t necessarily the best approach.

Leasing church equipment is often the most ideal financing used to cover equipment purchases. The high-tech nature of LCD projectors, HD video equipment, church sound equipment, and media ministries make them perfect candidates for equipment leasing. However, many churches are finding that it is just as easy to lease furnishings, office equipment, and even that new steeple! Church equipment leases also help keep that all-too-important cash in the bank… typically, only the first and last month’s lease payments are taken in advance when dealing with an equipment leasing company!

In the coming weeks, we’ll explore the various options associated with church equipment leases, as well as situations where a larger church loan might make better sense. We’ll cover the application process not only for equipment leases, but also for church mortgages and lines-of-credit.