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E-Myth – “Why most small businesses don’t work & what to do about it”

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Virtual Accountant | Increasing the Chances of Getting Approved for Financing

If entrepreneurs want to increase their chances of getting the financing they need this virtual accountant. They will need to be very specific and their financing request. When they outline it in their executive summary.

Business owners often don’t get the type of financing that they need. Because they are only asking for specific amount. And not outlining all of the products they need. And what they are doing with the money, that will require different products.

Business owners should understand what products are out there for them to get financing on. So that they can be as specific as necessary. To get everything that they need in their business.

The first type of financial product that they should be asking for is a mortgage. Virtual accountant says this is only if business owners are going to be buying a building. Or if they are purchasing land, and constructing a building on top of it.

A with Instead of asking for a specific lump sum. They need to specify how much is for the land. And how much is for the construction of their building. Because while they might both be mortgage product. They might have different terms on them.

Term loans says virtual accountant is the next product that business owners need to be specific when asking for financing. And these are for any assets that an entrepreneur might need to purchase. Whether it is a vehicle for their business. Or equipment and machinery. And even leasehold improvements will be included in this category.

Again, business owners need to list every specific asset. Because they might have different terms on them. Such as the difference between a vehicle and leasehold improvements. The more specific they are. The more likely the bank will award them to the financing they need.

There are forms of credit that they can apply for. And while they are the most sought-after. They are also the most difficult to get approval on. Because financial institutions prefer to loan on hard assets. So they infrequently give lines of credit.

However, business owners often love lines of credit because they will be able to access any amount of the money that they want. Anytime they need it. And they typically don’t have to pay back the principal of the loan. They only needed to pay back the interest. Which is much more financially viable for new businesses. As they typically face a cash crunch when they are new in the business.

And finally, there are the credit card products that business owners should be applying for. Virtual accountant says the reason why business owners I should put a request for credit card in with their initial financing request. Is because they are far more likely to get it at the beginning of their business. Rather than later on, months or a year after they start their business.

Since most entrepreneurs will need a credit card. They should put this a skin at the beginning. So that they can be more likely to receive all of the financing products they need.

Virtual Accountant | Increasing the Chances of Getting Approved for Financing

Business owners need to understand their business plan is going to be important for more than just growing their business as a virtual accountant. Business owners will often need to supply their business plan to financial institutions. In order to get the financing in that day they are applying for.

Therefore, they need to include all of the most important aspects of their business plan and to the executive summary. Since this is often the only part of a business plan that financial institutions read. Before awarding financing to business.

Not only do they needs to be extremely specific with their financing request and their executive summary. Listing everything that they’re going to be purchasing with that money. As well as what products they need. And even specifying the terms that they are hoping for.

But they also needs to ensure that they are including all important aspects of their business plan in the executive summary. So that they can give Assurance to their financial institution. That they are prepared to grow their business significantly. So that they can be more at ease, knowing that the business owner will be more likely to succeed.

Not only should entrepreneurs be asking for a specific amount of money says virtual accountant. But they also needs to ensure that they are specifying exactly what they are purchasing with that money. The type of financial product they are applying for each item. And even the terms that they want love the money with.

Even though the financial institution may not award them with the terms that they want. If they don’t ask for what they want. They might never get it. But if they do ask, and they do get it says virtual accountant. They will be very glad that they put in the request.

In fact, the bank might not give them everything that they want either. But they might make a counter-offer of what they can give. So business owner needs to realize that not only should they be approaching One financial institution. But they need to approach many different banks.

When they receive the proposals from each of the financial institutions that you have applied at. They will be able to look at each of the proposals in order to make a determination. On which one is in their best interest.

Therefore, business owners needs to understand that they shouldn’t just be looking at the interest rates that they are being offered by each financial institutions. Because while low-interest rate is important. Amortization should be taken into consideration as well.

The longer an entrepreneur has to pay off a loan, the lower the payments are going to be. And the easier there going to be to make. This is incredibly important for young businesses. Because they might have a lot of financial pressures on them. And the least Financial commitment to pay back a loan. Is often the most advantageous.

Therefore, business owners needs to understand what they should be looking for in the financing offers that they received. And make the choice that is most beneficial for them and their business.