Financing and Loan Assistance in Phoenix


We Can Help You Get Money to Grow Your Business


There are many good reasons to take out a loan for your business. You may want to expand your company’s capacity by purchasing a large piece of equipment or increasing your inventory. You may be planning to purchase an existing business. You might just want additional cash flow to expand. 

When you’re looking for a new business loan, it’s important to have trusted, experienced advisors on your side. A qualified accountant can help you with loan planning, gathering and preparing financial data and creating an ideal presentation for your lenders or investors. 

Requesting a business loan without adequate preparation can indicate to your lender that you may be high risk, which can increase the cost of your loan or even prevent you from securing financing. Here’s how an accountant can help. 

Loan Planning Shows How You’re Seeking Money to Grow

Banks and investors aren’t eager to loan money to failing business borrowing money to stay afloat. When you’re ready to get a business loan, you want to show lenders that you’re seeking money to grow. Consulting with a qualified accountant can give you a valuable outside perspective on your business’s operations and strategy.

 

Sound advice begins with an evaluation of your financial statements. This summary of your business’s assets, liabilities and net worth helps you define and transparently display its financial health. Based on the financial statement, we can project how likely you are to be approved for a loan and under what terms.

 

Even if your current eligibility for financing is questionable, loan planning can help you resolve certain issues, including improving profitability and reporting, which will make you more appealing to lenders.



Prepare Your Books for Review by Lenders

Lenders want to see that your business will be able to make the payments on your loan. You can help them feel confident by showing them current accounts payable and taxes. If you’ve fallen behind in your financial reporting, an accountant can help you identify any clients who need to settle up their accounts and make revised tax filings. They can also help you reach out to creditors to get old accounts into compliance.

 

The goal is to create a healthy financial picture for potential lenders. That picture might look a little different if you’re an existing business or a startup. The good news is that we can help no matter what phase your business is in.




Highlight the Success of Your Existing Business

Existing businesses will have more success with lenders when they can provide a clear picture of the performance of the business in the past few years. You can validate your business’s success with:

 

  • Business tax returns for the past three years
  • Year-end financial statement from the past three years
  • Interim financial statement summarizing the period from the year-end statement to the prior month
  • Personal financial statements from the owner and all partners


Show Why Your New Business Startup Will Succeed

Young companies don’t have a history of performance to support their creditworthiness, but that doesn’t mean that you can’t get financial backing. You have to provide logical support for your estimates with industry comparisons and pro forma (projections) for:

 

  • Projected financial statements for the next two to three years that show how fast you expect sales to grow and changes to costs and expenses. Showing estimated payroll needs and potential income and debt will provide a more complete picture to lenders.
  • Personal financial statements for the owner and all partners that show the financial shape of the principals of the company. You’re likely going to have to sign a personal guarantee to make the lender feel confident they’ll get money back if the business fails.


Create an Ideal Lender Presentation

When you ask for money to help your business grow, it’s important to understand the perspective of the lender. Lenders want to feel confident that the business they’re loaning money to will be able to pay that money back. This starts with the financial history and projections for your business – but it doesn’t end there.

 

An accounting firm in Phoenix can help you understand the borrowing process from the lender’s perspective, so that you can tell them with confidence who you and your business are, how you will be able to repay the money and whether and how the bank is protected if something goes wrong.

 

If you’re thinking of applying for a small business loan, we can help! Call H&H Accounting Services today at 480-561-5805.