Regardless of the profitability of your business, cash is an ever present need. Very often, the company with the fastest growth requires the greatest operating capital. This is because the need for greater inventories, staffing, and the growth of Accounts Receivable outstrip the profits generated. This is where a strong alliance with a good source of capital becomes essential.
Where Do I Go For Money?
Your first choice for financing should always be a commercial bank. Loans from family members tend to generate family problems. SBA (government backed loans), Venture Capitalists, "Accounts Receivable Factoring", and "Asset Based Lending" are increasingly expensive and demanding. Our experience and expertise with capital procurement encompasses the foregoing as well as IPO's (Initial Public Offerings).
Often, the strength of your business (assets and profitability), operating history, experience of staff, and market potential will dictate which financial source you should approach.
Our seasoned professionals can help determine your best option, and then assist in preparation of the documents necessary to meet your financial needs. Your initial contact with potential capital sources is of paramount importance. If you are well prepared, your chances of success are enhanced enormously.
Preparing Financial Documents for Lenders
Your financial records need to be impeccable, and reports must conform to Generally Accepted Accounting Principles. Poorly presented accounting records, will often result in a "turn-down" from your bank or other financing source.
Generally, once refused a loan by a commercial bank, business people look to Receivable Factoring and Asset Based Lending. This is a very poor choice, and frequently leads to business failure. Financial reporting requirements are enormous in such instances, and these lenders force your entire focus to collecting money for them. This in turn, often hastens a business failure.
What We Can Do For You
Our professionals will ensure that you choose the very best source of capital in keeping with your business' strength. We cannot change the nature of your business or its operating history, but we can help you to present it in the best possible light. Doubt in the mind of the lender, is often overcome, by a most thorough, complete and accurate presentation.
If you are in need of operating capital, call us today! Request your appointment with Len Mitchell, CPA. An initial 30-minute consultation is just $100.