Are high-interest loans leaving you on a unending spiral?

Strategic enterprise progress begins with well-managed financials, and managing your loans isn’t any exception. Whereas paying off loans is usually a supply of nice stress for a lot of enterprise homeowners, tying up your monetary free ends can imply the distinction between endlessly owing cash to your lenders, and elevating your organization to the following degree.

The query is that this: are your accounting techniques and processes as much as customary? If not, chances are high you’re paying rather more on loans than you need to be.

Our crew at Blueprint CFO will help! Right here is one instance.

When the Blueprint CFO started working with a neighborhood constructing provides contractor shopper, the agency had three excellent loans: Mortgage #1 (40% APR), Mortgage #2 (55% APR), and Mortgage #3 (25% APR). As a result of the agency needed to make weekly funds on these loans, they’d continued money circulation points. The corporate additionally discovered themselves in a Catch-22, caught in a unending cycle of buying loans — with even larger charges — to repay the earlier loans. There gave the impression to be no finish in sight.

In auditing our shopper’s financials, the Blueprint CFO crew discovered that the corporate’s books weren’t correctly ready, which led them to expertise numerous points, together with their loan-related predicament. Whereas the corporate utilized Quickbooks Desktop to problem invoices and payments, the agency didn’t have a cohesive report of its bills, belongings, tools leases, and many others. Furthermore, their financial institution accounts had not been reconciled for 3 years.

The Blueprint CFO crew responded to this in numerous methods.

First, we improved automation and created an up-to-date view of related information by transferring the corporate’s numbers from Quickbooks Desktop to Quickbooks On-line. This allowed our shopper to have a clearer view of their data so we may work in direction of a brand new monetary technique — one which would actually result in progress and profitability.

We then constructed high-integrity monetary statements and data, which elevated financial institution confidence within the firm. This led to buying a mortgage from a Regional Financial institution with a LIBOR charge of + 2%, interest-free for the primary yr.

In consequence, the corporate may repay all excellent loans, saving them $150,000 in 2021 curiosity bills. With their new financials, our shopper additionally now qualifies to use for his or her PPP mortgage payoff in addition to the brand new California Grant.

All in all, our rockstar accounting crew at Blueprint CFO was in a position to rebuild the shopper’s books and reconcile their financial institution and bank card accounts, leading to lots of of hundreds of {dollars} price of financial savings. We will help you do the identical! With our signature Profitability Roadmap method, our all-star crew of accountants at Blueprint CFO will help you ensure you have the techniques and processes in place to set your online business up for fulfillment.