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Tap reserves without breaking the bank

Low interest rates provide associations an alternative for funding new purchases, initiatives

Piggybank

Nov. 3, 2017
By William Ehart

Booming markets give associations greater flexibility in using reserves to achieve strategic goals, and many are consulting their financial advisers for options.

With variable interest-rate loans available in the 2 percent range, some advisers say associations can consider borrowing against their portfolios rather than selling assets.

When the $2.7 million-revenue NPES—The Association for Suppliers of Printing, Publishing and Converting Technologies bought out two other groups to take sole ownership of its two trade shows in April, the group borrowed half the money and tapped reserves for the rest.