How can your accountant help your business get the necessary financing?

Chad Bice | March 6th, 2012

Your accountant can help your business get financing in a number of ways.

Preparing documents. Lenders want to receive financial information in a specific format, and also want year-end and interim financial statements on a timely basis. Your accountant can help.

Discussing hot button issues. Get together with your accountant ahead of time to discuss your financial information and point out the areas that will prompt the lender to ask questions – and then you can formulate your response together. By knowing what your issues are and how to respond to them, you’ll be much better prepared for the discussion with your lender.

Advising on new and renewing loans. When you seek a new loan,  your CPA can help you find the best lender to meet your needs. And when your existing loan comes up for renewal, he or she can help you develop the necessary business plan and financial projections to better prepare for your meeting with your lender.

Helping you pick a path. Your CPA can give you projections of various loan scenarios to help you decide which course of action is best for your business. There are often several alternatives to raise capital, including banks, private equity, a combination of both or selling part of the business.

Looking over your loan document. Finally, your accountant can look over the loan document for unnecessary or restrictive covenants. Some loan covenants set debt to equity ratios that are nearly impossible to meet and may place your business in violation the minute you sign the loan. Although your lender will likely not remove the covenants, you can get help working through these provisions so your business can remain in compliance.

If your business is considering applying for or renewing a loan, talk to your advisor about ways he or she can help you through the process.


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