NY CPAs Aid in Navigating Lending Rules

Submitted by Jorina Fontelera on Tue, 07/13/2010 - 11:23

Many New York CPAs are finding that more and more small business owners are turning to them for help since banks and financial institutions tightened their lending restrictions.

Banks now want more details and a tax return as proof of a company’s stability is no longer enough. Banks and other lenders want more details before extending financing packages to small businesses, Amherst accountant James Kincaid told Buffalo Business First. He added that in the past two years, he has been doing more financial statements for his clients.

Additionally, CPAs are also doing more legwork when it comes to getting loans approved for small businesses. Raymond Nowicki, member of the NYSSCPA’s Buffalo Chapter, told Buffalo Business First that while he isn’t preparing more financial statements, his firm is doing more background work for his clients. “We have to do more work thinking creatively and pulling out different resources, which sometimes happen to be more challenging,” he said.

With banks requiring more information and implementing stricter terms and conditions, and possibly pulling lines of credit, small businesses are faced with more borrowing hurdles. “[Accountants] act in a more advisory role and we’re being more proactive,” Nowicki noted. “Accountants are being called upon to anticipate these problems before they happen.”

Do you see this trend happening in other parts of New York? Discuss in the comments section.

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