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You know the third seat in the fourth pew that you've always thought of as "yours"? It's getting a little threadbare. Maybe it's time to consider purchasing new pews for your church. Or new office furniture. Perhaps your classrooms are sadly out-of-date, or the carpeting in your entrance area is holier than thou?

It's time to get down to some serious shopping. Of course, shopping is the easy part. Catalogs and the Internet have made shopping for and purchasing new furniture and equipment very easy. Figuring out how to pay for it is the challenge!

Begin with a clear understanding of exactly what you will purchase and how much it will cost. Can you afford to pay cash? If not, how much will you need to raise, and is it feasible for your church to raise that much money? In this article, we list several options for raising the money you need.

If the need is immediate, cash is not available, and you can't wait until the money is raised, consider borrowing through a commercial lender. You will need to develop a financial plan that tells you how much you can afford to borrow. Your bank or lending institution will want to see this plan, and it should include church financial statements and budgets for the past three to five years (with special campaigns or contributions listed separately), along with church history and attendance figures and any special requests or unusual conditions.

Ask important questions of your lender, including the interest rate for fixed and adjustable rate loans, annual percentage rate (APR), special requirements (such as site visits), and fees (such as closing costs, commitment fees, and early payment penalties). It's a good idea to make a chart and compare all of the answers from every lender you approach.

Banks are eager to write loans, and interest rates are the lowest in recent memory. Due to the unsettled economy, however, be prepared for your lender to be more stringent about terms. Loans to churches and other religious institutions tend to be five-year balloon mortgages based on 20-year amortizations. Monthly payments are based on a 20-year repayment schedule, but the loan has to be repaid by the end of a five-year term or else you will need to refinance.

Many forms of commercial financing can be found on the Internet. If you put the words "churches AND loans" (without the quotes, but with the capital letters) into a search engine like google.com, it will return several companies that specialize in loans for non-profit organizations such as churches. The benefit of this kind of company is that they understand your needs and are used to dealing with organizations in the same kind of cash-flow situation as your church. Some charge fees, some don't. Online instructions are generally easy to follow, and you don't commit yourself until you click "submit."

Recognizing that loans are repaid through congregational giving, lenders will consider pledges for future giving as collateral for a loan. It may be a good idea to hold a pledge drive for your purchase before asking for the loan.

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