Accounting News and Notes

Asset Based Lending: Finding Alternative Sources of Funding Your Atlanta Business

Atlanta CPA on What to Do When the Bank Says No

Asset based lending is perhaps one of the least know of all the funding opportunities a business owner or entrepreneur has at their disposal when traditional banking options fail. Banks traditionally have and continue to focus more on the track record of a business given its past results, history and profits. However an asset based lender is much more apt to loan monies to businesses based upon their present. For example if you a new business and still marginally profitable, a traditional lending institution is more apt not to make a loan to a business, especially in light of current business and economic conditions. However a asset based lender might be much more inclined to make a loan to you using your current assets, such as Accounts Receivable rather than your Profit & Loss statement to make an underwriting decision.

For example a business that is growing quickly, has good financial sound clients, a good track record for internal control and integrity should consider Asset Based Lending when the bank declines to extend a offer or credit. An asset based lender, will spend much of their underwriting time evaluating your billing procedures, the integrity of your clients and their industry and the age of your receivables. An Asset Based Lender is likely to only extend a credit line when you have fiscally sound procedures in place and that your Accounts Receivable stay current. To protect themselves an Asset Based Lender will usually request that that all of your billings are paid to a lockbox under their control. The advantages of using an Asset Based Lender include the procurement of capital where it otherwise might not be available, flexible lending levels based upon the growth and size of your Lending base.

Traditional banking sources should always be explored first, as almost always, this will be a less costly alternative. Asset based lending is traditionally exponentially more expensive that standard sources but would still remain substantially cheaper than bringing in a Venture Capitalist (VC), who will own a percentage of your profits forever. Most Asset Based Lenders work hand in hand with banks and are more than willing to transfer the account to a traditional lending source as soon as the business’s profits, net worth, and track record make the business more “bankable.”

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html  

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales,  Forensic Accounting, Business Valuations and Bookkeeping.

What Clients of John Dillard CPA Have to Say…Helping Atlanta Business Owners Obtain Financing

CPA – “Never Underestimate the Value”

Helping Atlanta Business Owners Obtain Financing. We have helped Atlanta Business Owners Obtain Financing for:

-Business Acquisitions/Sales.

-Business Lines of Credit.

-Home Equity Lines.

-Factoring.

-Obtaining of Financing Proposals.

-Negotiation of Bank Loans, Terms, Payoffs, Amortization, Calls & Covenants.

Obtaining financing is both an art and a science. Part of the process requires good record keeping, good tax advice, the right entity set-up, proper tax returns, good internal controls and much, much more. No lender wants to be subject to the whims of an business owner who is not taking care of the basics and his own shop. Care should be exercised in all levels of business management to be sure sound and proper business decisions are being reached on a daily basis along with ensuring that job costing is done on each and every invoice and that profit margins are being obtained and achieved.

Care should be further exercised that you have a good standing with your customers, the business community, employees and are a contributing member to both the social and moral fabric of your community. No banker or lender will desire to lend to someone who is not presently paying their current obligations or who are not aware of the many business and economic issues facing their company.

We are much more than a CPA firm. For a CPA who We strive to do much more than just prepare your taxes. We look to understand your business from the bottom up, by looking at all facets of your business. We come alongside you in your endeavors to succeed as an entrepreneur. Though we do not expect it, some of our clients have invited us to treasured and special family events. However our long-term goal is that you life, your business and your retirement are all better off as a result of our business relationship.

At His CPA we work to retain the best CPA’s on our staff and whose desire is to serve the Lord, by serving You, our client. Our motto of “Serving Him…by Serving You, One Tax Return at a Time” is not just a watchword but a legacy. Serving clients by the “Golden Rule” is where the “rubber meets the road.” This is just part of a series of letters where we highlight just a few of the recommendations and client letters we have received. Call us today and put our staff to work for you making sure you pay your lowest legal tax, avoid unnecessary penalties and long range planning. We look to provide CPA and Tax Return Advice you can trust. Put an award winning CPA to work for you today as past winner of the Georgia Accounting Advocate of the Year Award.

Media Magic, Inc.

4536 Barclay Drive

Atlanta, GA  30338

December 11, 1995

Dear John,

Thank you for the financial consulting that you have provided my company.  Your initial suggestions and help in obtaining a line of credit for the company will make the balancing act with cash flow much easier.  I would also like to thank you for your suggestion and referral to a paycheck company to help us off-load some of the routine business matters that takes time better spent elsewhere.

Your financial consulting was very helpful and is appreciated.

Sincerely,

Scott J. Wilson, Ph.D.

President

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisitions/Sales and Bookkeeping.

Helping Atlanta Business Owners Obtain Financing as Their CPA for Decades

CPA – “Never Underestimate the Value”

Helping Business Owners Obtain Financing is an integral component of good financial advising. Working with a CPA who has the wisdom and insight to knowing what is in your best interests when looking to obtain financing. A good CPA/financial adviser will not necessarily help you obtain your dreams, but will do much to steer you towards financial options and considerations that will be best for you and your business

 Having served Atlanta business owners as a CPA and helping them obtain financing for some thirty years we have seen some trends in the financial community come and go along with good times and in bad. However there are tried and true business issues that never go out of style. First and foremost, do not get a loan you cannot afford to pay back. Loans, should only be for a limited purpose and time frame and should not be a lifestyle or consistent financial means of running your business. Whether you need financing for business Acquisitions/Sales, Business Lines of Credit, Home Equity Lines, Factoring, Obtaining of Financing Proposals or need help you Negotiation of Bank Loans, Terms, Payoffs, Amortization, Calls & Covenants, your CPA should be your first call to ensure wise financing decisions.

Obtaining financing is both an art and a science. Part of the process requires good record keeping, good tax advice, the right entity set-up, proper tax returns, good internal controls and much, much more. No lender wants to be subject to the whims of an business owner who is not taking care of the basics and his own shop. Care should be exercised in all levels of business management to be sure sound and proper business decisions are being reached on a daily basis along with ensuring that job costing is done on each and every invoice and that profit margins are being obtained and achieved.

Care should be further exercised that you have a good standing with your customers, the business community, employees and are a contributing member to both the social and moral fabric of your community. No banker or lender will desire to lend to someone who is not presently paying their current obligations or who are not aware of the many business and economic issues facing their company.

Work with a CPA who first looks to understand your business from the bottom up, by looking at all facets of your business. A prudent CPA should alongside you in your endeavors to succeed as an entrepreneur. A good CPA’s  long-term goal is that you life, your business and your retirement are all better off as a result of their business relationship with your company..

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta  CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/ To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!”

What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31

Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Business Acquisition/Sales and Bookkeeping.