Questions to Ask Your CPA About Financing Your Business

  • I am in the market for a bank loan. What kinds of information should be included in the business plan I present to bankers? How should this information be structured?

  • What are the key differences between debt and equity financing? Which is better for my company?

  • How can I tell if my company has reached the limit of its borrowing capacity? Can I comfortably handle additional debt?

  • What is "asset-based financing?" Is it often a "last resort?" What can I borrow with my asset base?

  • Should financing terms be linked to the useful life of the asset being financed?

  • How can I hedge or protect against a rise in interest rates that could substantially increase my borrowing costs?

  • What is "subordinated debt?" How can I use it to finance growth even after my company has maximized its bank borrowing?

  • How does factoring work? Is this a suitable way to raise money for my business? Who offers these arrangements?

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