Most small businesses will eventually reach the point where they need outside financing, but getting a business loan is not always that easy. Hiring a quality accountant from Goole or wherever you are based can help your chances of securing a loan though – in two ways.
Identifying why it is needed
A significant problem that many business owners face when trying to get a loan from either a bank or an investor is that they struggle to clarify exactly what the money is needed for and how much is needed. An accountant will be able to establish whether it is start-up or growth funding that is required, whether large changes that could affect the loan – like a sale or succession – are likely, and which form of outside financing will be most suitable.
How it will be repaid
Being able to show how and when you will repay any loan is crucial to winning over an investor or bank, and accountants are the greatest people for that. They can analyse the business’ current financial state and what the most effective means of repayment will be, including the cash flow situation and realistic projections for the future of the business. Unless you have the figures that can show a clear and viable path to repaying any loan you receive, it will be very hard to convince anyone to lend money to your company.
At Adaptive Accountancy, we’re small business specialists, and we’re available to advise you on seeking a loan at all times.