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Business loans for Accountants and their customers

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Business loans for Accountants

Assisting your small business clients with finance can be challenging with so many options out there from both banks and newer alternative finance providers such as Capify.

As traditional lenders have tightened their credit conditions and pulled back on SME lending, the rise of online, fin-tech lenders is providing small businesses with new opportunities to fund their growth. Help you determine areas for growth by providing insight on cash flow patterns, inventory management, pricing, and business financing.

The primary task of accountants, which extends to all the others, is to prepare and examine financial records. They make sure that records are accurate and that taxes are paid correctly and on time. Accountants and auditors perform overviews of the commercial operations of a business to help it run efficiently. For example gettingassistance with the Australian Taxation Office $30,000 instant tax write-off.

 

How can an Accountant help small business?

They can help to handle all the paperwork and making sure that you legally minimise your tax bill, an accountant can also be a great source of advice to help you develop your business. They can act as a business consultant, assisting you with various business problems, and offering the right solutions based on their experience. If your finances are more complex, you may want to engage an accountant to give you accounting and tax advice.

Accountants may also be able to help you with investment issues provided they have an Australian financial services (AFS) licence. You can check if they have a licence on ASIC Connect’s Professional Registers.

  • Hospitality business loans
  • Business Loans for Franchise
  • Business Loans for Hair and Beauty

 

How can accountants objectively compare the loan pricing metrics between the different online business lenders and make the most informed decision possible?

Capify empowers accountants and borrowers to better understand and assess the cost of small business financing by disclosing standardised prices. Capify customer

The Australian Accounting Standards Board (AASB) is an Australian Government agency that develops and maintains financial reporting standards applicable to entities in the private and public sectors of the Australian economy. Also, the AASB contributes to the development of global financial reporting standards and facilitates the participation of the Australian community in global standard-setting. The AASB’s functions and powers are set out in the Australian Securities and Investments Commission Act 2001. The Australian Securities and Investments Commission’s (ASIC’s) role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors. The AASB uses a conceptual framework to develop and evaluate accounting standards.

Unlike your typical personal loan, business loans involve more risk for a lender, resulting in stricter eligibility and more extended applications. You’ll typically need to gather a range of relevant documents and financial details to complete the loan application.

 

Read on to learn what to expect when applying for a business loan, including typical eligibility and documentation requirements.

 

In June 2018, a group of leading online lenders signed the Australian Finance Industry Association Online Small Business Code of Lending Practice (‘Code’), which aimed to make it easier for borrowers to make informed decisions about their finance options and increase transparency and disclosure standards across the Australian online business loan sector.

 

The code is created through collaboration with the Australian Small Business and Family Enterprise Ombudsman Kate Carnell, FinTech Australia.

 

Capify passion is a small business. Servicing small business or are small businesses in their own right. Capify constantly challenges ourselves to ensure we are delivering the best service possible to our customers and accounting partners while maintaining our small business focus.

As such, we have improved the quality of life of small business and recognise the vital contribution that small business makes to the economy globally.

 

Capify plays a pivotal role in the lives of their small business Accountants lives and their clients and are in an ideal position to support the productivity, cash flow, business growth and prosperity of small business and making a genuine economic contribution to the engine room of the economy.

 

For every small business and SME sectors includes the delivery of quality, continual professional development and education pathways, ensuring they maintain the currency of knowledge about low business finance using unsecured loans and relevance in an ever-changing and competitive market.

 

Capify also delivers products and services to benefit members and their businesses through an array of strategic commercial partnerships. Capify pricing provides clear and consistent pricing metrics, calculations and metric explanations. It discloses the Total Cost of Credit, Average Monthly Payment, the, and more. Capify makes it easier for accountants to identify if a financial product is right for their client’s needs, exactly how much it is going to cost and if a product is the best solution available to them.

  • Accountants Australia
  • New South Wales Accountants
  • Queensland Accountants
  • West Australia Accountants
  • South Australia Accountants
  • Australian Capital Territory Accountants
  • Northern Territory Accountants
  • Tasmania Accountants

Trusted lenders, like Capify, can easily be identified with the accreditation ‘Trustmark’. Make sure you look for this ‘Trustmark’ when dealing with an online lender for your client’s business finance needs. The trustmark is found at the footer of the Capify website.

 

Accountants play a crucial role in helping their business clients navigate their way through the fundraising process and identify financial solutions that fit their needs. Accountants can add more value to their clients by exploring different finance routes with all costs and fees visible.

Many SME owners are not aware of the alternative finance options available to them, so proactive guidance to help them understand the benefits of online business loans can make all the difference to their success.

Advising accountants on funding is also the perfect value-add to broaden an accountant’s services and core business. It can help grow and future-proof an accounting firm, as well as generate new revenue streams.”

 

What does it mean to be an Accountant?

An Accountant is a practitioner of accountancy or accounting, which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.

In Australia, there are three legally recognised local professional accounting bodies:

  • the Institute of Public Accountants (IPA)
  • CPA Australia (CPA)
  • Chartered Accountants Australia and New Zealand (CA).

What types of accountant’s are there?

Certified Practising Accountants (CPA)

CPA Australia is one of the most massive global accounting bodies, having members through the Asia Pacific as well as its home base.

To be a CPA, candidates must hold a degree or a postgraduate award recognised by CPA Australia, have demonstrated competence in CPA Australia’s prescribed foundation-level knowledge and within six years. They must have completed CPA Australia’s professional level examinations and the Practical Experience Requirement. Fulfilment of 120 Continuing Professional Development hours per triennium (3-year period) with a minimum of 20 CPD hours in each year is required for continued membership of Certified Practising Accountants.

Visit www.cpaaustralia.com.au

 

Chartered Accountants Australia and New Zealand (CA)

In 2013 the Institute of Chartered Accountants Australia (ICAA) and the New Zealand Institute of Chartered Accountants amalgamated to become Chartered Accountants Australia and New Zealand (CA). The Chartered title is an internationally recognised professional designation that reflects professional expertise and the highest of ethical and professional standards. Chartered Accountants Australia and New Zealand are made up of over 100,000 financially astute professionals. A member of Chartered Accountants Australia and New Zealand must have trained for a minimum of six years to achieve the Chartered Accountant designation. Chartered Accountants Australia and New Zealand:

Visit www.charteredaccountants.anz.com

 

The Institute of Public Accountants (IPA)

The IPA describes the term ‘Public Accountant’ as a globally recognised term for all Accountants serving the public, whether in practice, commerce, industry, government or the education sector. The IPA represents more than 24,000 members and students working in industry, business, government, academia and professional practice. Associate members of the Institute of Public Accountants (AIPA) must hold a University Degree in Accounting or a TAFE Advanced Diploma in Accounting.

Membership requires an Advanced Diploma in Accounting or Bachelor’s degree in Accounting and IPA program study to obtain a Master of Commerce (Professional Accounting). All members of the IPA (except retired members) must complete a minimum of 80 hours structured CPE activity per biennium (2 years).

Visit: www.publicaccountants.org.au

 

The world’s accounting bodies with global members (as of 31 December 2018) working in 150 countries and regions around the world.
CPA. Our core services to members include education, training, technical support and advocacy. Employees and members work together with local and international bodies to represent the views and concerns of the profession to governments, regulators, industries, academia and the general public.

 

How does a business loan work?

A business loan is a popular business finance options offered by both banks and non-bank lenders. Businesses are lent a lump-sum payment, which is then repaid, with interest, over an agreed term (generally anywhere from three months to five years).

Capify business loans come as either secured or unsecured loans and allow businesses to borrow from $5,000 to $300,000. Most business loans come with a fixed interest rate, and you will need to make repayments on a daily, weekly or monthly basis.

Two types of Capify business loans:

Secured business loan

You will need to use an asset, generally a residential or commercial property, as security against the loan. In return, you will regularly receive a lower interest rate, can borrow a more significant amount and are more likely to be approved by the lender.

 

Unsecured business loan

You do not need to use an asset as security on an unsecured loan. As an unsecured loan represents more of a risk to the lender, you will generally be offered a higher interest rate and may be less likely to be approved for a loan, depending on the strength of your application.

The good news is that business owners today have many more options when it comes to finding funding than they did years ago. But you’ll find that eligibility for those loans can differ wildly among lenders.

 

Here are standard business loan requirements you’ll find when applying for a business loan:

 Credit score.

Capify typically examines your business credit report when you apply. Lenders often require a personal score of at least 650 from successful loan applicants.

 

Age of your business.

To qualify for most online small business loans, you’ll need to be in business for at least a year. Your typical bank could require you to be in business for at least two years. You can consider a startup loan if your business is less than a year old.

 

Annual revenue

Lenders often require businesses to bring in annual revenues of $50,000 to $150,000.

 

Personal debt-to-credit ratio.

It sounds counterintuitive, but some lenders will consider too much personal credit a risk — you could turn to that credit if your business runs out of money.

 

Net operating income.

To be sure that you can meet repayment requirements, some lenders look for a total income that’s at least 1.25 times greater than your overall expenses.
Potential collateral. If you’re applying for a secured business loan, you may need to identify an asset — equipment, inventory or real estate — to back the loan against default. If you’d prefer not to provide collateral, you’ll need to compare unsecured business loans.

 

How you intend to use your funds?

You may need to specify precisely how you plan to use the money you borrow. Some lenders may limit how you spend the approved funds. For example, some equipment financing loans restrict you only to use the funds to purchase equipment.

Getting business loans can be a chore

Need some extra cash to take your business to the next level, but daunted by the loan process? You’re not alone. There’s a lot of paperwork and number-crunching involved. And after all that effort, you may have to sweat on the bank’s decision for ages.

Fortunately, the business loan process is getting better. Progressive lenders and online accounting are breaking down a lot of the traditional barriers.

Don’t forget the bank wants to approve you

Before you get started, remind yourself that banks wish to your application to succeed. The interest you’ll pay is a vital revenue stream for them. They want to give you the money. It’s up to you to make their job easy by turning up with a good business case.

Connect the dots for them. While banks are experts in money, they’re not necessarily knowledgeable about your area of business. You’ll need to demonstrate very clearly how the loan will unlock growth and ultimately get paid back. Present an obvious story.

 

Also, don’t forget that your bank manager will often need to get their boss to approve your loan. Give them everything they need to make that a straightforward conversation. That starts with your accounts, being organised, accurate, and easy to understand. Walking into a bank with a shoebox of invoices and complicated spreadsheets just isn’t going to work.

What you’ll need

When applying for a business loan, you should have:

  • income statements and balance sheets for the past two years
  • up-to-date financial statements
  • business plans or project plans to show the direction your business is taking
  • tax returns to verify your income statements
  • bank accounts, also for verification

It’s a lot of paperwork, but banks can’t make decisions without the right information. Many business loan applications get held up because applicants don’t present the correct information.

You can download our free P&L template and balance sheet template so that you head to the bank with the information they need.

Or you can forget all about the paperwork!

If you have modern accounting software, you won’t have to dig out all these documents. A smart system will produce information on demand, including:

  • income and expense reports
  • growth trends
  • forecasts

And if you have your software set up with bank feeds – so that income and expenditure data flows directly from your business account/s – the person approving your loan will trust that the information is accurate. That level of confidence will help your cause.

Presentation matters when going for a business loan

When asking your bank for a loan, forget about tables and spreadsheets. A picture paints a thousand words. Create charts and graphs that show how your business is tracking. It’s so much more compelling than handing them raw data and challenging them to interpret it. Clear graphical reports will make it much easier for your bank manager and their boss to evaluate your application.

Again, accounting software will make this simple because you can lift charts and graphs from your dashboard. If you don’t use an accounting package, take the time to make the graphs manually. The visuals will help crystallise the opportunity in the minds of the decision-makers.

Get your story right

When applying for a loan, you’re aiming to convince the bank that your business is a good bet. To do this, you’ll want to know a little about how they think. How do they evaluate risk? What sorts of arguments do they respond to? Which cases are weak? Then you can form a story that puts your business in the best possible light.

 

An accountant can help you do that. They prepare lots of loan applications so they know what you should include in your application, and how to present it. Plus your bank manager will have more confidence in an application that a financial professional has helped prepare.

If you don’t have an accountant or bookkeeper, don’t feel wrong about hiring one for this process. They’re often approached to help businesses get access to finance. You may not even have to visit their office if you don’t want to. Many can do this sort of work online.

Find an accountant or bookkeeper who can help you online

Instant lending
If you’ve made the switch to cloud accounting, you may not have to go through such a formal loan application process. There’s a new breed of lender that can assess your application online and give you instant access to capital.

Companies like The Credit Junction work this way. You send data from your accounting software to the online lender, and they evaluate your loan application within days (typically less than 14). You don’t even need to have a prior relationship with them. The quality and integrity of the data in your accounting software give them all the security they need to make a quick decision.

These types of lenders are more interested in the future of your business than its past. They don’t need to see your credit score, for example. Instead, they’ll focus on your collateral and use the analytical tools built into your accounting software to understand your business and its prospects.

Online lenders will generally want to see:

  • that you’re making a profit or projecting to make one soon
  • what assets you have
  • that you have a credible management team in place

Find lenders that can approve your finance application online.

Changing finance options

If you use an online provider, you’ll generally get a credit line rather than a loan. The Credit Junction says most business owners prefer that sort of arrangement. Credit lines work like an overdraft or credit card. The lender gives you access to an agreed amount of money, but you don’t have to use it all – and you pay a monthly interest-only payment on what you borrow.

 

For example, you may apply for a credit line and be granted a limit of a million dollars. If you only use half of that, you’ll only pay interest on half. It gives you the liquidity and flexibility to run the business the way you need to.

Business borrowing is getting simpler

Getting finance used to be hard for everyone. Business owners had to pull together mountains of paperwork to prove their financial position. The bank had to ask for information from multiple sources to make sure the data was valid.

 

It was time-consuming for them and gruelling for you. Some business loan applications are still like that. However, modern accounting tools provide clean, validated data that allow lenders to make far quicker decisions – with much less effort from the applicant.

 

But no matter how you apply for a loan, or who you use – never take lending lightly. It might get more comfortable to take on debt, but that doesn’t mean you should. Always consult your financial advisor and make sure the loan will move you closer to your business goals.

 

Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply now.

 

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How Capify helps accountants acquire funding?

Capify provides fast business loans and is one of Australia’s leading finance firms that obtain the purpose of providing funds and assistance to any type of business who require it.

They offer two types of loans or credit products including; Merchant Cash Advance and Capify small business loan.

Capify is different from competitors with their ideal business loans Australia, and their ability to see potential success in businesses without being bias as much as possible on previous credit ratings.

Capify is an alternative to the big bank and does not offer a line of credit or interest rates, instead, they work with a fixed rate. Loan terms range from 3 months to 12 months and their loan amounts range from $5,000-$300,00.

How could small businesses in Sydney and NSW use Capify business funds?

  • Pay Bills
  • Marketing
  • Hiring extra staff
  • Purchasing Stock
  • Improve Cash Flow
  • Purchasing a Business car or Truck
  • Renovating or Expanding the business
  • Upgrading or Purchasing Equipment

Why choose Capify?

The great news is that Capify’s application costs are free, we don’t charge you when you submit an application for a small business loan in Sydney. It’s obligation-free and you can commit whenever you are ready.

A great financial product that Capify can provide is Merchant Cash Advance, where this revolves around businesses gaining a lump sum of money and repaying it through minor percentages of their EFTPOS transactions. This would greatly benefit the business as it would prevent cash flow shortages, thus they are able to have the cash to pay debt payments, expenses, and unexpected costs.

Furthermore, enterprises are also introduced to the option of Sydney business loans that Capify can provide, increasing capital, thus increasing cash flow. Alongside this, they deliver expert advice that contains knowledge and techniques on how to improve cash management to assist in keeping your business as healthy as possible.

Capify is Australia’s first small business lender since 2008, we have built and maintained a google review of 4.5/5.

Smart accountants know how and when to borrow money

Business owners and operators trust their accountants to help them make wise decisions about how to manage their finances, ensure they maintain their tax obligations and provide advice about financing. But what about your accountant? How do they decide when to take out business loans and choose finance providers?
Like any business, accountants may need to borrow money, This might be to expand the business to a new area, purchase new equipment or to invest in new property. Those loans can be either secured or unsecured.
A secured business loan uses an asset such as a residential or commercial property as security against the loan. That offsets the risk by the loan provider which enables them to reduce the lower interest rate on the loan and, potentially, lend a larger amount.
In contrast, an unsecured business loan doesn’t use an asset as security. This might be good news for the borrower but it represents a greater risk to the lender. As a result, unsecured loans typically have higher interest rates and allow you to borrow smaller amounts. But they are often favourable to making purchases using credit cards which, while also unsecured, have higher interest rates.
Depending on the circumstances, both can be useful financial instruments for accountants to employ to support business expansion, the purchase of new equipment, expand your business by investing in marketing or business development, or to overcome cashflow challenges.
For many accountants, there is a definite peak in cashflow around tax time each year. While this is good news as revenues can be boosted, it’s also a challenging time as resources are stretched. There may be a need to take on extra contract staff leading to higher wages and on costs such as superannuation payments, workspace and office equipment such as computers and printers. And while there is the promise of money coming once the peak workflow is done and clients pay their invoices, you’ll need funds to cover all those extra expenses before your clients pay.
In situations like that, where the need is acute and you are confident that you’ll be able to pay the loan back before the higher interest rate bites, then an unsecured loan is a good way to cover the costs.
When the business is investing in assets that will provide longer term value, then a secured loan, where an asset is used as collateral against the loan, is worth considering. For example, a secured loan can be used for real estate, computer equipment or upgrades to your current office.
For example, let’s say your accounting practice wants to update its technology so that you better support a mobile workforce, lower your printing costs and provide staff with up-to-date PCs. That will involve the purchase of a number of capital items such as printers, networking equipment for the office and perhaps some new servers. As you own your own offices, you can use the equity in your property as security on that loan.
That will reduce the interest rate on the loan as the lender knows they can recoup the loan amount in case of a default. And the lower interest rate, because of the lower risk to the lender, means the benefit of buying the equipment and enhancing the operation of the business, could outweigh the cost of the interest.
Choosing the right type of financing for your accounting practice can help with the management of cashflow during peaks and troughs, and support business expansion and improvements in operational efficiency and effectiveness. Lenders like Capify can help you make the right choice, depending on your situation so that your accounting practice is ready challenges and opportunities it faces

Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply now.

 

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FAQs

What are your interest rates?

We don’t use interest rates for our funding solutions. Instead, Capify offers an agreed total payback amount. The payback amount depends on the type of business you operate and the term you require the business finance for. This way your business knows upfront the total costs, making managing your cash flow easy.

Does Capify have an office branch in Sydney?

Capify is a fin-tech and purely operates online. We do not have a physical branch. However, our head office is in Parramatta and staff Australia wide.

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