Accounting is a popular career choice, employing roughly 1.27 million people nationwide. Certified public accountants (CPAs) are constantly in high demand, making it a stable and lucrative career that scarcely suffers amid the economic ebbs and flows. In order to launch a successful accounting firm, ample startup capital is required to ensure success. These days, it’s becoming increasingly difficult to get approve for a bank loan, and entrepreneurs need to seek out other methods in order to secure startup funds. Fortunately, there are a variety of CPA loans at your disposal, so you can get the small business capital you need to help your business flourish.
Borrowing From Friends And Family
Friends and Family- When launching your business, the first place to turn for financial assistance is to the people who know you best. Your friends and family are well aware of the passion and work ethic you possess, and they are likely eager to help you succeed. Borrowing from friends and family can provide a viable no-interest funding option that offers more leniency than a bank loan. Nonetheless, show your family that you take their investments seriously by creating a repayment contract for each of you to sign.
Credit Cards For CPA Business
Credit cards are a popular method of obtaining startup capital, with about 65 percent of businesses using credit cards to cover routine business costs. Depending on your business and personal credit history, the credit card you qualify for may be secured or unsecured. With a secured card, you’ll be required to provide collateral that can be seized if you default on your payments. Unsecured cards offer higher credit limits and no collateral, but they are often equipped with heftier interest rates as a result.
SBA Loans for CPA
The government also provides loans to small businesses, and eligibility requirements are much more lenient than with bank loans. A government-backed loan is a loan that is either partially or fully insured by the government. This enables loan agencies to take larger risks on applicants, and they are willing to provide loans for first-time business owners and those with no credit. These loans have higher interest rates than bank loans and come with long-term payment plans, often between 3 and 10 years.
Working Capital Loans for CPA Firm
A working capital loan can get you money to help pay for business costs as needed. These funding options are typically issued for smaller amounts and come with short-term payment plans, typically around six to 15 months. They provide a valuable source of immediate funding and can help you cover costs right away. Average approval time of applications is 48 hours.
Crowdfunding for Accountants
Crowdfunding is the newest approach to financing a small business. By using online crowdfunding platforms, you can pitch your business proposal to millions of potential investors and allow strangers to invest in the future of your company. This is a great way to market your business while raising money because you’ll receive widespread exposure throughout the process. The money raised is interest-free, making it a cost-effective alternative to traditional bank loans.
The Bottom Line on CPA Loans
In order to start a successful CPA firm, having proper startup capital is imperative. Launching a small business has grown progressively more difficult, as banks become more rigid in their approval process. Thankfully, there are a variety of alternative funding options available, so you can access the finances needed to thrive in your industry. For all your working capital needs, contact Credibly.