Skip to main content

How to Get Business Loans for Your Accounting Firm

Get Business Loans


As an accountant or bookkeeper, your job is to manage and take care of other people’s taxes and money all day. That said, you also have to look after your own business’ finances and plan for your accounting firm's future. This could mean applying for business loans.  

If you’re looking to obtain long-term loans, SBA loans, or any quick financing for your accounting business, here’s how you can get a hold of the money you need:

1. Figure out what type of business loan you need

Start by examining what your specific business needs are. Are you looking to expand your office space? Invest in specialized technology? Maybe you’re looking for a financial cushion to ease the blow of slower seasons? By identifying exactly what you need capitol for – as well as the amount you need and when you  need it by – you can then make the most informed decision as to which loan solution makes the most sense to apply for. You should also think about whether or not you’ll need spending flexibility. 

Like many other businesses, accountants and bookkeepers have two choices when it comes to obtaining financing – banks and alternative lenders. Banks usually have stringent requirements and are more reluctant when it comes to granting loans to small businesses. Alternative lenders may be a better choice for accounting firms that lack strong financials and need quick funding. 

2. Gather your financials and review them

Once you’ve decided on the type of loan that best meets your business’ needs, it’s time for you to gather your business’ financial documents. You need to know where you stand financially so you know what loan products you can afford. As an accountant, you’re expertise in financial analysis will certainly come in handy during this part of the process. 

Start by looking at how long you’ve been in business. Go over your annual revenue, monthly profit, and business credit score. If you’re aiming to apply for a business loan from any traditional lender, you need to prove that your accounting firm is doing well and that it can meet the required payment amounts. The better your numbers are, the higher your chances are to qualify for better term loans.  

3. Collect all the documents the lenders need

After you’ve finished reviewing your firm’s financial documents, and you’re confident that you can afford the loan you want, the next step is to gather the documents needed for the application. The lender may provide a list of the needed requirements through their website, but not all do. If they don’t, you should call the lenders and ask what documents they require for business loans.

In general, lenders may require you to submit the following documents:

Personal identification

Business licenses and permits

At least three months of personal and business financial statements

Business plan

Two years of tax returns

Balance sheets

It’s worth noting that banks may require more documentation like proof of ownership, business lease, or business affiliations. Alternative lenders may require less. In some cases, they only need your personal and business’ financial statements. The requirements will vary from lender to lender, but it’s better to come prepared. 

4. Fill out the loan application form and submit

Lastly, fill out an application and submit it along with the required documents. Then you just have to wait for the lender’s approval. Bank loan applications could take 60 to 90 days to be approved, but alternative lenders can approve your loan within 24 hours after submitting your application. If you’re in a time crunch and need to address a cash flow gap quickly, the latter would be a much better choice.

Final Thoughts

Being an accountant gives you an edge when it comes to business loan applications. Your extensive knowledge on the matter will help you gauge your firm’s financial standing, thereby making it easier to choose what type of loans you can afford and apply for. 

Think about your business’ current needs. From there, identify the type of loans that will address those needs, then study your financial documents. Once you have the loan, make sure to meet the required repayments on time. Late payments and defaults can hurt your business credit score and can ruin your chances of applying for better loan terms in the future. Create a strong repayment strategy and use the business loan to run and grow your accounting firm successfully. 

Comments

Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Basics of Stock Markets: The A-Z Quick Sheet for a Beginner-Level Investor

Several individuals wish to engage themselves in stock market and invest their money in stocks, but they don’t have an idea about Stock markets and how they work . In fact, there may be lot of info available to you, but they may all seem confusing without actually knowing the basics. This post aims at educating the beginners about the basics of stocks market. Read on to enlighten yourself about the A-Z of stock market. 

Manage Your Student Loan Debt Better in 2015

Image via gettyimages It is usually seen that most of the students fail to manage their student loan debts efficiently after their graduation. The reason is quite simple. Most of the students spend their earnings on comfort and luxuries instead of repaying their student loan debt. It has become comparatively easy to acquire student loans. However, each one of us should keep in mind the fact that repaying loans are not easy as borrowing it. This is why there arises the need of a proper strateg y when it comes to managing your loans. It is desirable to formulate these strategies while you are still in college instead of waiting until you get a good job. If you are one of this kind, here are some easy tips for you to manage your student loan debt better:

Looking For Ways To Finance Your Next Building Project? Look No Further

If you need money to start your next building project, you may be quite surprised by the number of different options you have. However, the options that will actually be available to you will depend on many different factors and these factors will decide how eligible for construction finance you are. In this short article, we will look at what you can borrow, how you can borrow, and what restrictions you might come across. Please note that while the information in this post is correct, your own personal situation will determine what the best course of action is for you. Speaking to an independent financial advisor will help you to see if you are eligible for construction finance and how to go about getting it. Different Types of Mortgages Let’s start with the different types of mortgages that may be available to you. Remember, whether one is better for your needs than another depends on many factors. Commercial Mortgages Let’s start with commercial mortgages because they a

Learn how real estate agents value properties for sale

How do you get into real estate sales? Every owner wants to sell his property for its maximum value. And all too often they end up choosing a real estate agent simply based on who gives them the highest initial valuation. However, this will be a costly mistake. How your home is valued. If you make a mistake in the estimate, it is possible that it will be sold for a price that is less than the real value of the property. On the other hand, even overpriced homes will discourage potential buyers from viewing your home. Also, high selling prices can even result in a long wait before a good deal comes in or does not sell at all. Therefore, titration is recommended as a suitable agent. Here are some things that real estate agents consider during property valuation . But, few factors real estate agents consider when valuing a property. 1. Local services:   During property valuation, one of the main factors that can drive the sale price up is the actual area where the home is located. Aspects

Some Important Questions about Cash Loans in UK

The downfall in the economy has hit us all pretty bad and a lot of us are trying our best to deal with the financial trouble. People are finding it hard to make ends meet. In such a situation, a lot of them resort to taking cash loans just to cope with the problem. But most people do not have enough knowledge about the process. There are some questions that always linger in people’s minds when it comes to taking cash loans in Welwyn Garden City. Here are some of those questions that most people seem to have about cash loans: