Fortunately, the Great Recession is showing signs of letting up. Small businesses are slowly but surely also getting back on their feet because banks, micro-lending organizations and credit unions, among other lending institutions, are opening up their lending facilities to the sector. This is where the best Rochester accounting firm – Rizzo DiGiacco Hern & Baniewicz, of course – can provide expert assistance for small businessmen – you, for example.
You can tap the expert services of your Rochester accountant in getting approved for, securing the loan, and using it for good purposes. Here’s how.
Preparation of Plans and Statements
Small businesses usually rely on the lending facilities of banks usually with the guarantees from the Small Business Administration (SBA). The arrangement is that the banks service the loan according to the SBA guidelines while the SBA lessens the risks for non-repayment through its guarantee of repayment program.
But in the wake of the global financial crisis, even the SBA’s guarantee may not be accepted by the banks for obvious reasons. Instead, banks are placing increased emphasis on the capability of the businessmen to actually turn in a profit from the infusion of capital. Such emphasis comes in the form of well thought out business plans, cash flow and profit forecasts, and audited financial statements, among others.
With the best Rochester accounting firm on your side, you can present these essential loan-related documents. Yes, you can also prepare these documents but when you have little knowledge or little time to do so, your best course of action is to entrust the job to the pros particularly your Rochester accountant.
Identification of Capital Sources
The Federal Reserve Bank of New York classifies small businesses into four stages of development, namely:
• Stage One – Startups
• Stage Two – No revenues as of date but with product samples, draft business plans and cash flow forecasts
• Stage Three – Pilot programs are in place coupled with full-featured business plans
• Stage Four – With documents revenues and expenses brought by full operations for a short period
What is the implication for small businesses? The earlier your business is in the stage development process, the harder you will find it to secure a loan from banks with or without the SBA guarantee.
Again, the best Rochester accounting firm will come to your rescue. You can rely on its accountants to be your trusted business advisor as well as your friend and ally in business development, if and when you do your part of the deal. How does your accountant do his job in this regard?
First, you will be referred to non-traditional sources of capital such as micro-lending organizations. These are great resources for small businessmen with relatively small capital requirements; the average loan in the industry is at $12,000 with reasonable repayment terms.
Second, you will be provided with expert assistance on the preparation of the required documentation as well as tips on passing the interview aspect, if any. Accountants have a wide network of contacts, too, that can be tapped into for further information on the ins and outs of applying for small capital infusions from these micro-lending organizations.
Don’t wait for the capital funding to slip through your fingers. Get the best Rochester accounting firm on your side now!
RDG+Partners wants to be the primary advisor for motivated business owners. The firm is committed to providing boutique level accounting, tax and business consulting services to the Rochester, NY community.