Accountant Loans – Case Study

loans for accountants
Published March 16, 2023

At V4B Business Finance, we know a lot of Accountants! We work with them all the time. Sometimes we are helping them find financing for a client, and sometimes, we are providing our services to the Accountants themselves. In this case, we had worked with a London-based Chartered Accountant to help support several of their clients in the past. We had built up a good relationship through our previous experience so we were an obvious choice when they decided to seek financing.

We were able to secure two loans for the company. The first was a short-term advance against their current debtors. The second was an unsecured loan. They used this financing to upgrade their computers and software. This made them more efficient and provided better tools for their staff.

The new financing helped the firm spread the cost of their new investments and monetise their outstanding invoices rather than keeping that capital tied up. This allowed for improvement without hurting cash flow or requiring the accountants to accrue extra capital.

Work In Progress (WIP) Finance

Our loan advisors were able to get £50,000 for the Accounting firm using WIP financing, which enabled them to immediately make investments in their business. They were essentially able to access money that would have otherwise been tied up until all outstanding invoices had been paid. This is an immense untapped resource for many companies.

Depending on the industry, invoices can sit unpaid for months. Plus, if there are any negotiations, issues or updates to a client’s product or service, an invoice can remain outstanding for much longer. This makes work-in-progress financing a great tool to have in your toolbox as a business owner.

Results

We got the Accountancy practice £50,000 in WIP financing as well as a £20,000 unsecured loan. We were even able to get them a repayment plan that coincided with their invoices so they knew they had a steady cash flow to cover repayments. The WIP loan had a term of 12 months and the unsecured loan ran for 3 years to help keep their payments affordable and prevent a large repayment from affecting their liquidity.

The WIP loan also unlocked money that would have otherwise been inaccessible, allowing them to respond faster to their business needs.

Takeaways

A backlog of invoices can tie a company’s hands. They have earned money but they simply can not access it and that can hurt their ability to cover expenses, innovate, update or expand. This can be incredibly frustrating as your business is successful, but you can not take advantage of your good fortune.

A work-in-progress loan from V4B Business Finance can unlock this capital immediately so that you can use it in the best way possible and is not tied to the invoices. Plus, Accountants that work with us to obtain a loan for one of their clients can actually earn a bit of money from our referral fees. This means you help your client and open up another revenue stream for your practice.

If your firm has been putting off growth or investment because of unpaid invoices, contact V4B Business Finance today. We can find you the right loan with payments you can afford at a great rate for you.

At V4B Business Finance, we can also offer loans to help your business buy new equipment, upgrade your IT or refurbish your current premises. This allows your company to retain its own money for longer so it can invest in staff or new projects.

What would you purchase for your firm if you could unlock the money straight away?

  • Fast access to funds
  • Flexible payment options
  • Dedicated account managers
  • Smooth your cash flow
  • No arrangement fees
  • Great customer service

You may also like