How Bankers and CPAs Can Assist More Clients

In today's market of tight credit, banks and other institutional lenders are holding back on lending to even some of the most qualified borrowers. We all know that this is happening. It certainly does not help the business owner who just does not have the liquid cash flow to meet their daily operational expenses or those who could benefit through expansion.

Business owners must consider all areas affecting their cash flow and deal with it. These cash flow problems can stem from late paying clients, contracting issues, contract payment terms that might be too long, sales forecasting or pricing issues, or other mitigating circumstances that might affect that business' cash flow. These cash flow issues will certainly cause the business owner a lot of sleepless nights. When you have business owners having to make the choice between what bills they must pay certainly does not help to relieve the strain of whatever else they might be going through. When they can get the necessary assistance to move their small business forward, they will certainly be able to sleep better and meet their daily business needs.

This is where collaboration through a financial network can be a major asset for any business owner. When the banker, CPA, attorney, or other key business contact, can assist the business owner and guide them toward alternatives that can be a benefit them, it makes for a win-win-win for all involved. Often times, I find that bankers or even CPAs do not know of alternative financing options. In other instances, they do not understand how these options can benefit their clients. These individuals sometimes seem taken aback with the number of options that are available. Imagine what it would be like for the business owner who gets turned down by their banker, who is then directed by that banker to contact an alternative financing source that can help them.

When a CPA is reviewing a client’s file and realizes that this client is in need of financing alternatives, and knowing that this business owner cannot easily access institutional lending, they can then assist their client through their knowledge of and access to alternative financing options. Many small business owners have no idea where to go to access capital except their banks, so it is important that those who work closely with these enterprises be aware of and are connected to sources that provide such options.

Written by: Karlene Sinclair-Robinson
Author of The Small Business Owner's Guide To Alternative Funding