Small business loans are hard to come by these days because banks are being more cautious about their lending practices. When banks do loan money, they often require the borrow to meet many financial and non-financial covenants. One such covenant is a requirement for the borrower to have their financial statements either reviewed or audited by a certified public accountant (CPA) (either a sole-practitioner or a firm). This is a cost that many small business owners are either not aware of, or forget about, when they are calculating the cost of borrowing money.
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