Financially savvy companies rely on accounting firms to improve their business management. Aside from ensuring the accuracy of financial records, and compliance with laws and regulations, accountants also provide additional advisory. For example, they can point out growth areas and discuss cash flow patterns, pricing, inventory management, and business financing.
Accountants in central London are among the most trusted and experienced professionals that can help you secure a loan for your business. Hiring an accountant gives you a higher chance of approval if you plan to fund your business with a loan. To give an idea of what an accountant can do to help you with your business loan, here’s a list you can check out:
Accountants help your business qualify
Your business needs to be qualified for your loan to be approved. Accountants properly and effectively communicate your qualifications for the loan by:
- Defining the needs of the company
- Properly describing the purpose of the loan
- Considering your financial choices, including whether a bank loan is best or needed.
Due to poorly articulated loan application letters, most borrowers have low chances of getting approved. So, it is best to hire an accountant to indicate the needs of your business and the reason why your loan should be approved.
Accountants will quantify the loan for you
After qualifying your business needs and options, an accountant will proceed to quantify the loan. Finally, an accountant can determine repayment options and calculate your present financial situation and credit requirement.
Accountants can monitor and understand your business and its operation with both a bird’s eye view and a narrow focus financial perspective. These professionals can also help you know your business by the numbers and why they are vital for your business goal. In addition, they will explain to you why you should apply for a business loan.
Accountants help present the application
After compiling the necessary information for the loan application, you’ll have a higher chance of getting approval. A financial statement audited or reviewed by an accountant is most preferred by most financial institutions. Aside from that, your accountant can also discuss to you the lending process. It will help you prepare information that the bank might require, like:
- Borrower profile. Whether you’re applying as a corporation or an individual, the borrower’s identity could be required by the lender.
- Repayment ability. Naturally, the lender will need to see projected cash flows with payback amounts that show your business can maintain the loan without adversely affecting business operations.
- Available collateral. To secure the loan, most lenders will also want to know about the assets available.
- Credit check. Expect the bank to demand a credit check on you and your company. Your accountant can assist you in answering any issues that may emerge during this check by reviewing your credit history with you.
- Terms of the loan. When you negotiate the loan conditions, your accountant can help you secure the best deal for your company.
Applying for a business loan can be pretty taxing and complex for most business owners. So, hiring an accountant is more practical and desirable.