Three forms in which accountants can help secure business loans for their clients

Financially aware companies are increasingly turning to their small accounting firms for advice on how to properly operate their businesses, according to a 2014 IBISWorld survey. Since accountants are among the most trusted business experts, providing additional advisory services to customers puts them in a positive light.

As a professional intimately acquainted with the financials of a business customer, it makes sense for both the customer and your accounting practise to go beyond tax prep and bookkeeping into a consulting position. Offering business consulting services not only helps you to deepen and maintain your partnerships with existing customers but can also differentiate your practise from other accounting rivals while increasing your business with new customers.

One main stop is to give customers assistance in obtaining a business loan, no matter where the company is on the business advisory route. In particular, this form of service is of benefit to small businesses, as certain business owners may not know the best way to showcase their business to a financial institution.

Small business loans outstanding totalled $12 billion more in 2014 than the previous year, according to data from Sageworks Bank Information, representing the first annual rise since 2010. As of the end of 2014, US banks have loaned more than $630 billion to small businesses. You can help if your business client is finding funding.

1. Quality. 

Significant value-added service accountants should provide is to help the business owner define their requirements, to express the intent of the loan and to consider different funding options, including whether a bank loan is even desired or necessary. Many borrowers approaching lenders are unable to express how much and why they need, and that can be a big bank turnover.

2. Quantifying. 

When the expectations and choices of the borrower have been established, accountants will assist in the next stage of winning a loan: quantifying the current financial situation and the need for credit, as well as helping to find sources of repayment. As an accountant, you are in a unique place, from a financial viewpoint, to give both a narrow-focus and a 50,000-foot view of a corporation and its activities. In this service, consumers can see the real value added by translating what the numbers mean now what they mean for the ambitions of the owner, and the consequences for looking for a business loan.

3. Introducing. 

Finally, you will help customers bring together the data that will increase the likelihood of approving a loan request from a bank. Many financial institutions need reviewed or audited financial statements in the present banking environment. Knowing this you can help to be constructive for your client.

When they consider and apply for a loan, accountants have the expertise and perspective to support business customers. Business customers need assistance to define their financial requirements, measure current and expected results, and present a winning loan package. One example of how accountants can help clients solve challenges and provide value-added business consulting services is to help them through this form of endeavour.