Sy Schnur, CPA/PFS and Associates, Financial Advisors and Insurance Agents

CONNECT

Address:

241 Lexington Ave. 2nd Floor
Mt. Kisco, NY 10549

Phone:

1(914) 244-4400

Fax/Other:

914-244-0088

Financial Statements and Business Loans

  1. Business Loans

  2. Debt & Financing Advise

  3. Audits, Reviews & Compilations

  4. Business Plans

  5. Financial Projections & Forecasts

  6. Business Appraisal, Litigation Support & Forensic Accounting

  7. Disability Insurance

 

 

Business Loans

Securing a Loan For Your Company That You Can Repay With Reasonable Repayment Terms

Securing a loan to start or expand your business is a time-consuming and, in some cases, a frustrating process. Taking the following steps can help expedite the process & ensure your success in obtaining the needed funds.

  • Prepare a realistic fully supported loan request.
  • Learn what the banker is looking for.
  • Seek the advise of a certified public acct. who understands the complete process for loan application approval.
  • Use the services of professional financial planner to guide you on the proper amount & payback terms.

By including a CPA with a financial planner in the relationship between your bank and business, you can greatly ease the frustrations of applying for a loan, borrow the amount you need with the proper terms and increase your chances of success.

Preparation Pays To present yourself and your company as favorably as possible, you should be able to state your reasons for requesting a loan clearly and professionally. Before you approach the bank about a loan, ask yourself:

  • Why do I want a bank loan?
  • How will the loan benefit my business?
  • What type of loan do I need? Short-term? Long-term?
  • How much do I need to borrow?
  • How will the money be used? Be as specific as possible! Provide complete details!
  • Do I have a very clear and realistic plan to generate the additional funds to repay the debt?

Your ability to answer these confidential questions will help you present your Company as a solidly managed one. A CPA can help you prepare the information you will need to provide appropriate answers to the lender's questions.

Our in office computer programs pre-determines your qualifications using banking formulas.

 

The Banker's Perspective

You may be seeking a loan for a variety of reasons, but keep in mind that the bank is responsible for lending depositors' moneys. In order to determine your ability to repay the loan, the bank will evaluate your character, the collateral you offer, and the capacity of your business to repay the loan. Additionally, the bank will need a complete financial & background analysis of you and your company. Specifically, the lender will need information as follows:

  • Your business plans and objectives
  • Data on your business' ownership, finances, business history, operations and personal.
  • A comparison of your operating & balance sheet ratios to industry averages
  • A marketing plan showing your business' potential growth & specifically in which areas.
  • A cash flow analysis of your actual & past experience, with projections of future income, expenses, and cash flows.

Loan officers will use all of this information in determining whether or not your loan request should be processed for approval. Requesting a loan to satisfy past due creditors, unless accompanied by a convincing strategy to improve your financial situation, is usually not viewed favorably by a banker. If you are having trouble paying creditors now, chances are that you are not generating enough income to repay the loan. This is a risk bankers are not willing to take.

Always supply complete credit history. Any defaults, late pays, etc. Bank does a complete credit check through full banking industry. Any information which is not disclosed, will show up & be a major negative to your final loan approval.

Gathering Financial Data

In considering your loan request, potential lenders will want to review as much financial data about your company as possible, whether it's a startup or an established business. Here is some information bankers look for:

  • A summary of average amounts of funds on deposit.
  • A list of investments, fixed assets, other assets, with details and supplementary schedules, giving market or appraisal value where appropriate.
  • The aging of receivables, with details regarding any concentration in a few customers
  • The details of notes receivable and the risks of collection
  • Inventories with details on price stability, aging and turnover
  • Your liabilities and reserves, with full details where indicated.

In addition, bankers may need detailed information on collateral to be offered and may require personal financial statements. This is particularly true when the company is closely held or if a loan guarantee agreement is involved. Always be honest about your financial situation. Whenever possible, any unfavorable information should be accompanied by details of management's plans to overcome the problem. Your CPA can help compile the financial data, and may be able to help you prepare a business plan, to present information to selected lenders effectively.

Developing The Loan Request

Submitting an acceptable loan request requires more than a little financial know-how. Although you know more about your business than anyone else, you may not be the most qualified person to prepare and present your loan request. A CPA can assist you in identifying the most appropriate funding sources and aid you in preparing a funding proposal that will help you get the loan you truly need.

As CPA's, and Business Valuers Sy Schnur & Associates can help you in all phases of your financial needs.

  • Determine whether or not you really need a loan and if the loan will solve your company's problems & meet its objectives.
  • Determine where your best source for obtaining loan funds exist and where you will get good terms for loan repayment.
  • Ascertain your community's banking requirements for securing a loan.
  • Review significant aspects of your business & prepare key ratios for developing trends.
  • Draw up a realistic forecast of your Company future based on its past history & your realistic future goals.
  • Determine the size of the loan you need & calculate a repayment schedule including interest cost you can comfortably handle.
  • Negotiate the terms of the loan agreement.
  • Prepare financial statements, projections & business plans that lenders will request from you.

The financial expertise of Sy Schnur & Associates, with the combined qualifications of being CPA's, & Business Valuer's can make the difference in securing your business' future. We have the insight into many different types of businesses, as well as experience in start-up companies. By helping you present a complete picture of your business to potential lenders, we can help you obtain the funding you need. Before you complete any forms at a bank, contact Sy Schnur & Associates. We will give you the honest advise you need for this difficult financial situation.

 

Debt & Financing Advise


Whether your needs are corporate or personal, our professionals can assist you in sorting out the different options available for debt management and financing that will result in optimal tax implications and minimized financing costs.

 

Audits, Reviews and Compilations


Our financial statement services comprise all three levels of assurance depending on your company’s needs.

Audits offer the highest level of assurance to third parties, and include in-depth examination and confirmation of account balances, inventory observation and testing, and selected transaction review.

Reviews provide limited assurance to outside party of interest and involve inquiries and analytical procedures wherein we review the proper handling of material financial statement matters and identify items that may require further investigation.

Compilation are usually requested for internal purposes, or some light confidence and are based upon information provided by a company’s management. They do not offer assurance but may involve some adjustment to accounting records.

 

Business Plans


Planning For Your Business Future. This Is Mandatory For Keeping Your Business Alive In The Current Economic Environment.
Aggressive Competition Is Currently Planning How To Take Your Clients.
Either You Plan To Be The Successor Or You Will Be Devoured.
Preparing organizational plans may be essential to your firm's well-being and future success. A business plan reflects the goals of a Company., it states:

  • Where You Are Today.
  • Where You Would Like To Be Tomorrow.
  • How You Plans On Getting There

Sy Schnur, is a licensed CPA & a licensed Business Valuer as well as being a Financial Planner. With aid of our specialists we can help you identify your business strengths/weaknesses & prepare plan which addresses problems, and identifies the opportunities, so business whether it's a start-up or established, can reach its full potential, long-term growth.

How Your Business Benefits?

Formalizing your company's objectives in a written document can help you see and thus initiate actions that will result in increased profits. Setting conceived business goals and objectives can also result in the following:

Improved Resource Utilization.

An evaluation of your Company resources helps determine capabilities and limitations.

Increased Employee Motivation.

Clearly stated goals and each individuals roles in achieving them. This provides an increased sense of employees' involvement in the organization's future.

Increased Communication.

A written document allows you and others to review and better understand the business, thus stimulating ideas and programs to strengthen the organization.

Greater Organizational Control

A formal plan encourages adherence to project completion dates and standards of performance.

Source Of Information For Third Parties.

Stated goals & plans are useful & major aid when seeking business financing, negotiating mergers, or sales promotion.

Learning Experience.

An  in-depth study of your organization provides a better understanding of strengths and weaknesses. This allows you to deal with admitted weaknesses!

 

The Planning Process

There are five basic stages involved in developing a business plan for a Cornpany's growth. Our firm is equipped with the knowledge & experience & will guide you through each stages of the planning process.

  1. Developing Statement Of Purpose.  A clear statement of your business' purpose & reason for being, will guide the formulation of the plan.
  2. Defining Goals.  When defining goals, determine what the plan should accomplish & the feasibility of these accomplishments. Consider the compatibility of personal goals & company goals. We will work with you on documenting your selected goals so they can be clearly understood, consistently applied, & periodically evaluated. We recommend that you use a planning time frame of three to five years including enough flexibility to modify your goals.
  3. Determining Strengths & Weaknesses.  Making valid decisions on what programs need to be implemented to achieve goals requires extensive analysis. We can be a vital resource towards this end. Specifically, the following needs examination:
  • Size of your potential market
  • Description of customer needs
  • Industry statistics and projections
  • Competitive market data
  • Promotion & advertising strategies

Product

  • Description of product line
  • Patent, trademark & trade secrets
  • Manufacturing&operation fixed & variable costs
  • Laws and regulations affecting the business

Finances

  • Historical financial data
  • Cash management data
  • Projected financial data

Writing The Plan.

The actual plan states what actions you need to take to achieve your goals, taking into consideration the current, competitive and future environment of your business. An analysis of your business' strengths and weaknesses is then prepared. Programs to emphasize the strengths and minimize the weaknesses of your business can then be incorporated.

Revising The Plan.

Once developed, the plan should be reviewed and revised on a regular basis. By constantly reviewing, monitoring and updating the plan you are ensuring the effectiveness of the plan and your business future.

Our firm can help you develop both the plan and an effective monitoring program that can keep your business plans and activities on track. Begin the planning process now by contacting us now. Your future depends on proper planning.

Summary Of Why We Should Help You

If You Do Not Plan Your Continued Business Existence, You Will Be Preventing Its Perpetuity.

Developing a business plan requires an analysis of various data on operations, finances, and your overall organization. With the multiple licenses of being CPA's, Business Valuer and Financial Planner & having an attorney on staff we are particularly qualified to help your businesses in every stage of the planning process. Because of this broad background & over 40 yrs. of experience in handling a multitude of financial matters & advice & assistance in devising first-rate business plans.

 

With our specialist qualifications we can:

Review Historical Document Such As:

  • Financial statements and management letters
  • Debt and lease agreements
  • Budget & other internal plans & reports
  • Income tax returns

Compare Your Business History To Industry Data

Analyzing your business' financial ratios & compare results with ratios of similar businesses and make judgments based upon review of data.

Develop Projections Of Sales And Other Financial & Operations Data

Projections of possible future results based on alternative future actions or events, are extremely useful in determining which plans leads to best results.

Evaluate Operations

An objective review of your operations will provide information, about employment conditions, expansion potential, inventory conditions, storage requirements, equipment condition & usage, & other factors. Whether you use the business plan to plan your business or for a presentation to others you will benefit from the assistance of knowing that your business plan has been prepared by persons whose expertise you can rely on.

 

Financial Projections & Forcasts

No one can predict the future perfectly, but we can all benefit from planning for it. Our firm combines expertise and experience with a gained understanding of your business to produce financial projections that can help you manage your business plan and spending. Depending on your needs, our work can range from top-level reports to detailed financial models.

 

Business Appraisal, Litigation Support & Forensic Accounting

Why Is Business Valuation Important?

A business valuation allows a Business Valuer, where the situation exists, to take advantage of allowed discounts for lack of marketability & minority interest. This will allow the business value to be adjusted by discounts ranging from 15%-51 % which can be quite significant for Estate & Gift Tax Values & for Divorce Mediation. As part of Divorce Value, we also do the forensic accounting.

Litigation Support and Forensic Accounting

Litigation support - We offer highly cost effective, extremely reliable document review and assessment support for all types of litigation including tort cases, class actions, complex litigation, white collar, and other government investigations, and insurance defense.

Forensic accounting - We provide an in-depth review of property transfers and money going in and out of accounts as well as using external tracing tools to determine the extent of fraud or manipulation. This take place in many venues from business, divorce, bankruptcy, securities and other areas where cash or merchandise is uncontrolled.

 

Disability Insurance


The probability that you will experience a disability that will last more than 90 days is statistically more likely than the probability of your premature death even at age 60.  For this reason, disability insurance coverage is of primary importance in your financial planning.  Your personal resources and your disability insurance policy should be able to replace at least 60 to 70 percent of your pre-disability income.  Disability insurance provides you monthly payments when you are unable to work because of illness or injury.

Short term disabilities can usually be covered by your emergency fund and savings, vacation or sick leave benefits, or in some cases, short-term disability coverage available from your employer.

When considering the purchase of long term disability insurance, consider the following:

  • Annual renewable disability insurance is typically the least expensive way to purchase disability insurance.
  • A step rate or level premium disability insurance plan, purchased from a participating (dividend paying) insurance company, will also reduce the long-term costs of a disability policy.
  • Purchase a policy that is guaranteed renewable and non-cancellable.  With the guaranteed renewable option you have the right to renew the policy annually, regardless of your current health, up to a maximum age, generally age 65.  With a non-cancellable option, if you pay the premiums, the insurance company cannot cancel or modify the provisions of the policy although they can increase the premiums for an entire group of policy holders.  Many companies are charging extra for the non-cancellable option.
  • Purchase a policy that provides guaranteed  future insurability.  This feature allows you to increase your benefit without proving evidence of insurability.
  • Disability insurance should cover both sickness and accident.  Choose a policy that covers sicknesses when first manifested and not first contracted.  An illness may not manifest itself until after you purchased the policy although it may have been contracted before you purchased the policy.  Also select a policy that pays benefits if you lose your vision or the use of your arms or legs.  Avoid contracts that require the severance of your limbs.
  • A good disability policy will cover you in the event you cannot perform the usual and customary duties of your own occupation.  A more restrictive policy, and less expensive, will only pay benefits if you cannot perform the duties of any occupation to which you are reasonably suited by education, training or experience. 
  • The disability policy should also have a provision to pay a residual disability benefit.  This coverage is payable if you can only return to work part-time. 
  • If possible, obtain a policy that will pay benefits for your lifetime or at least until age 65.
  • Reduce the cost of disability insurance by selecting a long waiting period between the time the disability occurs and the time payment of the benefit begins.  Be sure you have enough money to survive the waiting period.  Usually a 90 day waiting period or longer will create a dramatic reduction in disability premiums.  Waiting periods are typically 30, 60, 90, 180, or 365 days.  The policy should have a provision for recurrent disabilities.  This provision provides that if you return to work after being disabled for some time period and then become disabled again by the same condition, a new waiting period is not triggered.
  • Premium costs for disability insurance may be discounted for non-smokers and good health.
  • The insurer should be willing to waive your premiums during any period of time that you are disabled and receiving a disability benefit.
  • The policy should provide an option to increase your benefits to reflect an increase in the cost of living (inflation indexing).  Some policies place a ceiling on the amount the coverage can increase.  This ceiling is usually two or three times the basic coverage.  Find out what the ceiling is before you pay for this additional benefit.
  • The policy should pay for physical and occupational rehabilitation costs.
  • A waiver of premium provision that allows the annual premium to be waived until 60 day after complete recovery.

 

Consider purchasing a policy that pays a benefit for partial disability.

  • If you have more than one source of coverage, ascertain whether there is a coordination of benefits provision.  With a coordination of benefits provision, the benefits paid under one policy will be reduced by the benefits paid under another.
  • Your disability insurance benefit should not be reduced by any Social Security disability benefits you may be entitled to if you are permanently disabled.
  • If you are on a tight budget consider a step-rate plan where premiums start off low for several years then increase to the normal level.
  • When considering the purchase of disability insurance, ask the agent to provide you with the company's history regarding the payment of disability claims.  Ask to see the payment of claims ratio.  A low ratio of 80 percent or less may indicate that the insurance company is too restrictive in the payment of claims.  The claims information is presented in the Argus Chart.  A good agent will be pleased to provide you the information.
  • Determine the financial stability of the insurance company before you purchase a policy.  Depending on your age, the policy may be in force for 20 to 40 years.  Select a company that has top ratings from three of the five rating companies, and that will not likely be a candidate for acquisition or merger with another company.  Mutual companies have a better chance of avoiding a merger. (See: How To Evaluate The Strength Of An Insurance Company).  In addition, select a company that writes little or no group health or disability insurance where AIDS claims and other underwriting weaknesses could result in higher future rates or company financial weakness.
  • If you are a partner or an owner of a closely held corporation, consider funding a buy-sell agreement with disability insurance in the event of your disability.  Under this arrangement, the company generally would pay the premiums for the coverage.  Upon your disability you would receive payments in exchange for your ownership in the enterprise.
  • If you are an owner of a business and you have an employee that is indispensable to your business, consider purchasing a Key Employee Disability policy.  If your key employee becomes disabled you will receive a monthly payment to cover expenses for additional help or to replace lost profits.  Benefits are generally paid for a period no longer than 24 months.
  • If you are a business owner, consider the purchase of business overhead expense insurance.  This insurance covers business expenses such as rent, salaries, utilities, lease payments, insurance premiums, and other obligations should your income cease as a result of your disability. 
  • Your disability benefits will be received tax-free to the extent you paid the premiums.
  • Long-term disability insurance can be purchased less expensively if it is group coverage.  Request that your employer offer group disability insurance, provided there are other employees who will participate.