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

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Virtual Accountant | Learning How to Get the Best Financing for Business

Business owners should aim for not just getting financing for their business says virtual accountant. Their goal should be getting the best financing they possibly can. Because that is ultimately going to be best for their business.

However, many entrepreneurs don’t end up getting the right type of financing. Simply because they are not specific enough in the types of financing that they are asking for the banks. When they submit their business plan.

Ideally, business owners should write into the executive summary of their business plan. Exactly what types of financing they are looking for from their financial institutions. The executive summary is the most important part of the business plan.

It is the summary of the plan itself, and often the only part of the plan read by Bankers, financial institutions as well as high-level investors. Virtual accountant says that the summary of the most important parts of the plan is going to be easy to read, so that Anyone who reads the executive summary will know many specifics about the business.

The reason an executive summary is important says virtual accountant. Is because the financing companies that are going to Grants an entrepreneur the loans that they need. Will not read a 40 page document. But they will read the executive summary.

Therefore, entrepreneurs need to be very specific in what they need their financing for. How much financing they need, as well as what products. however, if entrepreneurs don’t know what Financial products are available to them. They won’t know what to ask for, which can lead to problems.

The first product that business owners are often most familiar with is a mortgage. However, many people may not realize that Morgan has existed for business buildings as well as homes. Therefore, if an entrepreneur is going to buy land, or buy a building, they will typically need a mortgage.

The next form of product that business owners need says virtual accountant is a term loan. Term loans are often used for vehicles. But business owners can use them for machinery, and all of the equipment and fixtures that they need for their business.

Business owners may also be familiar with lines of credit. And these are often the most sought-after forms of financing. But also the most difficult to obtain. They allow an entrepreneur to have access to a pool of money whenever they need it. While only ever having to pay the interest back instead of the principal.

However, financial institutions are very picky about who they give lines of credit to. And so not all business owners who asked for them will get them.

The last Financial product is a credit card. And almost all business owners are going to need a credit card of some limit and their business says virtual accountant. They need to know what limits they want on their credit card. And approximately how much money they’re going to be putting on it at a time.

Virtual accountant says business owners needs to be forewarned however. The larger the limit on their credit card is, the less amount they’re going to get in other Financial products.

By understanding all of the financial products. Business owners can put that into their executive summary and their business plan. And be far more likely to get the financing they need for their business.

Virtual Accountant | Learning How to Get the Best Financing for Business

Almost all businesses are going to require some kind of financing says virtual accountant. Whether it’s a loan to buy the building, purchase assets that they will need to start their business. Or even get a credit card that will help them pay their suppliers and Order supplies.

However, if business owners don’t realize that they needs to be very specific when they ask for financing. Or if they don’t know that they can ask for all of their products at the same time. It might lead to entrepreneurs making mistakes in there request.

One of the biggest mistakes that business owners make, is in order to increase their chances of being granted alone. Is that they’re going to ask for the minimal amount of financing that they need. Thinking that it’s going to be easy to get more loans as their business grows.

Virtual accountant says the reason why this is not true. Is because as an entrepreneur continues in their business, there are more and more financial burdens upon them. That will make it more difficult to pay loans back instead of making it easier.

Therefore, a business owner should work with their virtual accountant in order to figure out exactly what amounts of financing they need, and then exactly what products. So that they can ask their financial institution. All of the same time for everything that they’re going to need.

And business owners do this, not only will their Banks get a clear picture of what they are doing with their business. Which will make them more likely to Grants them their loan. But it will also keep business owners from making the mistake of thinking they can get a loan later on in their business.

Business owners also needs to understand that they should be very specific in the terms that they are asking for as well. This is not because they are likely going to get it says virtual accountants. But if they ask for it, and they get it it will be worthwhile. And if they ask for it, and do not get it. There’s literally no harm done.

Business owners also need to understand that as they are being very specific in the different products that they need. They will also need to be very specific about everything that they are doing with the money in each category. The reason why, is because different assets even within the same category might have different terms on them.

For example, if an entrepreneur needs $50,000 for all of the assets they need in their business. They needs to be very specific about watch those assets are. If how to be a piece of Machinery as well as a vehicle. The vehicle is going to have different terms on it then the Machinery. Which is wine business owners needs to be extremely specific.

Another example of this says virtual accountant is if an entrepreneur is going to buy land, and then construct a building on that land. The land and the building will require a mortgage. But chances are, they will require a different mortgage.

Ultimately, the more upfront and the more information a business owner gives their Bank. The more information the bank is going to have in making their decision. They’re also likely to give a business that has a very well written executive summary alone. Because they are exhibiting that they have the ability to be organized, and be much more likely to succeed in their business.