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

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Virtual Accountant | Why Specify The Type of Financing Wanted in Business Plan

In order to be more likely to obtain the financing needed since virtual accountant. Business owners need to specify what type of financing they need. As well as what amount of each product they need.

By writing these in their business plan. And specifically in their executive summary. Can make it far more attractive to Banks and financial institutions. To award a business owner with the loans that they are requesting.

The more specific they can be says virtual accountant. The more likely the entrepreneurs are going to be at getting what they asked for. Therefore, if business owners aren’t aware of all of the financial products that they can access. This can make it very difficult for entrepreneurs to be specific.

The First Financial products that business owners should be aware of says virtual accountant is the credit card. This is one of the most basic forms of financing that most businesses are going to need. Whether it is to have a credit card number on file with a service provider. So that they can get uninterrupted service. Or if it is to make online purchases such as with Google Adwords. Credit card is vital.

However, entrepreneurs also need to keep in mind that they need to be very mindful of the limit they ask for their business credit card. The higher the limit on the credit card. be less financing of other products they’re going to get. So business owners need to figure out exactly what limit they need. And nothing more.

The second’s products that business owners to keep in mind that says virtual accountant is the mortgage. This is specifically for buildings and real estate. So if an entrepreneur is not purchasing either. Then they don’t need to include this in their executive summary.

However if a business owner purchases Land, by the building, or builds their own building. All of those things will require a different term on it. And so they need to specify that if they do need a mortgage.

The third type of financing product available is the term loan. These are specifically for assets or leasehold improvements. And so an entrepreneur will need to specify all of the assets they’re going to purchase. This is also because the different assets that they might buy and also fall under different terms of the loan.

And finally, a virtual accountant says that the last product is a line of credit. And while this is the most popular form of financial product for business owners. It is often the most difficult to get.

The reason it’s most sought-after says the virtual accountant. Is because it will allow lunch to access any amount of the money they need. Whenever they need it. But also because it is going to typically allow entrepreneurs to pay it back only interest. Instead of principal for the first few years.

Lines of credit are also the most difficult for businesses to get. Primarily for the same reasons that they are attractive to entrepreneurs. Thanks prefer loaning money on hard assets. So they only infrequently grant lines of credit to entrepreneurs.

Virtual Accountant | Why Specify The Type of Financing Wanted in Business Plan

If business owners want to increase their chances of getting approved for their financing says the virtual accountant. They need to learn how to be very specific and what they are asking from their banks. When they approach their Bank are there financial institution.

Often, business owners fail to be specific enough, and they end up without the financing that they need. They might end up with the correct amount but in the wrong product. Or they end up with the wrong product, which is useless.

If an entrepreneur needs money for assets. And they end up with a mortgage. Then it’s not going to help them grow their business. Which is why it’s very important to ask specifically. So that they can end up getting what they actually need.

Business owners also need to keep in mind, that’s they need to include the specificity in their executive summary. This is the beginning of their business plan. And is essentially a synopsis of all the most important aspects of it.

Virtual accountant would say that obtaining financing is one of the most vital aspects of a business plan. Because without financing. Much of the business plans might not come to fruition.

Business owners also need to keep in mind that for every product that they are asking an amount of money for. They need to specify in their executive summary exactly what they’re doing with each sum of money. This communication can help give Banks the reassurance, that the business owner is going to spend the money on exactly what they need.

And the business owner will be far less likely to ask for more money than they need, and hopefully use the additional funds to fund their own line of credit.

It’s also important that an entrepreneur specifies every single thing that they are doing with each sum of money. For each product that they are requesting financing on. because various purchases might have very different terms on it. Which can affect the overall amount of financing that a business gets.

Business owners also should be keeping in mind the terms that they want. And while it’s less likely that’s there going to be a ward of the terms that they request. Virtual accountant says that if they put the terms they want into the plan and the bank agrees. It is well worth the effort. And if they don’t get what they’re asking for. There was no harm in trying. As Wayne Gretzky said, you miss 100% of the shots you don’t take.

When entrepreneurs keep these tips in mind. They will be able to be more likely to get the financing that they need. And even if they don’t get everything that they are asking for it. They will be far closer to what they need. Then if they simply asked for a total amount. By doing this, business owners will be far more likely to be able to get the financing they need to get their business off the ground.