Securing Your
This presentation is the property of its rightful owner.
Sponsored Links
1 / 16

Advice from CPAs PowerPoint PPT Presentation


  • 53 Views
  • Uploaded on
  • Presentation posted in: General

Securing Your Business Financing. Advice from CPAs. Bank loans are the most common source of financial support Explore alternative funding options Your CPA can help!. Lending 101. Debt Financing Most straightforward Interest payments and repayments due within a specific time

Download Presentation

Advice from CPAs

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Advice from cpas

Securing Your

Business

Financing

Advice from CPAs


Lending 101

Bank loans are the most common

source of financial support

Explore alternative funding options

Your CPA can help!

Lending 101


Types of financing

Debt Financing

Most straightforward

Interest payments and repayments

due within a specific time

A standard bank loan

Types of Financing


Types of financing1

Equity Financing

Raise capital by selling interest to investors

No guaranteed return

Investors share in company’s wealth

May also insist on sharing management and control

Types of Financing


Financing options

Which financing option is best for you?

Ask yourself:

Do you want total control of your business?

Do you want to leave a legacy?

Eventually, do you want to sell your business?

Financing Options


Key sources of funding

Financial Institutions include:

Commercial banks – focus on the needs of small businesses

Community banks – accommodate both individual and commercial customers

Credit Unions – support vision of their members

Key Sources of Funding


Key sources of funding1

Customer or Supplier

Provides discounts for up-front payments

Generates cash for your business

Factoring or Accounts Receivable

Immediate funding

Factoring agreement can be complicated

Key Sources of Funding


Key sources of funding2

Working Capital

Similar to a line of credit

Tied to company’s receivables

Economic Development Groups

Offered through federal, state and local governments

Friends and Family

Treat it as a business contract

Create a written agreement to avoid misunderstandings

Key Sources of Funding


A brief overview of equity financing

Initial Public Offering (IPO)

Common route for selling stock

Private Placement

Less complex because investors are pre-selected

Private Investors

“Angels” take an equity stake in your company

A Brief Overview of Equity Financing


Two rules of thumb

Your company MUST be seen as a good risk:

Be prepared

Have a business plan

Your CPA can help you identify your goals

Two Rules of Thumb


Questions and answers

Why do you need financing?

Apply for capital with a specific purpose

Is it urgent, short-term or long-term and how much do you need?

Be specific and detailed

Questions and Answers


Questions and answers1

Do I have a realistic plan to generate funds to repay debt?

Present it as a recoverable risk

How strong is your management team and support staff?

Identify your strengths and weaknesses in advance

Questions and Answers


An effective business plan

Executive summary

Explanation and operation of business

Description and qualifications of management

Financial data

Miscellaneous attachments for details

An Effective Business Plan


A few more tips

ALWAYS be honest about your financial situation

Be prepared to discuss any business problems you encountered in the past

Offer preventative measures

Your candor counts

Work closely with a CPA

A Few More Tips


Review

Define your goals

Prepare your business for scrutiny

Demonstrate your company is a good risk

Prepare for questions and answers

Consult with your CPA to determine which options are best for you

Review


Advice from cpas

Thank you and good luck!


  • Login