QUESTIONS TO ASK YOUR CPA ABOUT FINANCING YOUR BUSINESS
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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?