Church Loan vs. Church Bond
A church loan is not the only option for churches seeking funding for construction or improvement projects. Church bonds are similar to church loans because they help finance church building projects. The difference is that while a conventional church loan comes from one lender, a church bond comes from multiple lenders who buy the bond offering.
For most churches, however, bond are probably not the best financial decision, as there are many more costs associated with obtaining financing in this way. These include much higher closing costs and a higher effective interest rate. It is important for the church to weigh the options carefully, as for some churches that are not in a hurry to pay off the bonds early, a church bond may be a better fit as opposed to a loan.
Click here for more information about church bonds.