CPA Loan Programs 2025: What’s New and What’s Worth It?

If you’re a certified public accountant (CPA) with your own accounting firm, you know what it’s like to help your clients with their finances. You provide a valuable service and ensure your clients remain in compliance with tax laws. While your services are helpful year-round, you likely have unique needs during tax season and in the off-season. To help you manage these transitions, you might need to hire employees, invest in equipment, or manage cash flow. That’s where CPA firm financing can make a major difference.

How You Can Use CPA Firm Financing

CPA firm financing can be used for a wide range of purposes. Whether you’re just starting out and want to improve cash flow or you want to expand or acquire an accounting firm, you can get the funds to help. Here are some examples of how you can use CPA firm financing.

• Working capital: If you need to keep things moving with your day-to-day operations, you can look at various funding options for working capital.
• Hiring employees: You might feel crunched for time during tax season and need help. CPA firm financing can provide the capital you need to hire employees.
• Commercial real estate: If your accounting firm is growing and you’re looking for a permanent office, a commercial real estate loan can help you secure a space.
• Business acquisition: You might be interested in acquiring another accounting firm. That can come at a hefty price. But business acquisition loans are available to help you make it happen.
• Equipment upgrades: To stay ahead of the curve, you need the latest technology to run your business and serve your clients. That can mean updating your servers, software, and computers. If you want to be one of the best small business accounting services, you need to be competitive.
• Marketing: Business owners often focus on day-to-day operations, letting marketing fall to the wayside. But to maintain brand visibility and grow your client base, marketing is an essential part of any business plan.
• Growing your business: When business is booming, it’s a good thing. But it also has its own challenges. It can stretch your resources to the limit. Luckily, you can use CPA firm financing to help grow your business and invest in people, equipment, or space to help take your business to the next level.

Whatever stage you’re at, there are business financing options that can help you. But there’s not just one type of financing or loan option.

Types of CPA Firm Financing

Here’s an overview of different types of CPA firm financing.

Term Loans

If you need an influx of capital to reach your business goals, a term loan may be your best bet. Through a term loan, borrowers receive a lump sum upfront. Repayment terms are generally over a fixed period. That means that monthly payments are predictable, making it easier to add to the budget.

The loan amount can vary depending on the lender, as well as your revenue and credit score.

Business Line of Credit

If your financing needs are ongoing, something more flexible may be more beneficial. A practical solution is a business line. Through a business line of credit, borrowers can continue to tap funds from their available credit limit.

It offers flexibility, as you can use just what you need up to your credit limit. So, if you only need $30,000 out of a $50,000 business line of credit, you’ll only pay interest on the $30,000. As you repay the $30,000, your available credit limit increases. While this type of CPA firm financing provides flexibility, it’s essential to have a plan for repayment.

SBA Loans

The Small Business Administration has different loan programs, but the best option for CPA firm financing may include:

• The SBA 7(a) loan: Accounting professionals looking for loans to cover working capital, acquiring real estate, purchasing equipment, and more, can turn to the SBA 7(a) loan program. Out of all the SBA loans, this is often the most popular and in-demand option. It comes with a steep maximum loan amount of $5 million.

One of the main benefits of SBA loans is that they’re backed by the agency, making it less risky for the SBA lender. Borrowers should be aware that both processing and funding timelines can be longer with the SBA. The application process may require lots of paperwork and be more drawn out compared to other financing options. So that’s something to keep in mind if time is of the essence.

Business Acquisition Loans

Perhaps you want to acquire another accounting firm and multiply your client base and take the fast track to growth. Business acquisitions can be a smart investment if you do your due diligence. They can also cost a lot more money than you have on hand. When looking at CPA firm financing, you can look at business acquisition loans specifically.

You can also explore whether seller financing is an option. Instead of going through a traditional lender, you’d work with the seller on a financing agreement directly to make the transaction.

Equipment Financing

If you need to give your equipment systems an overhaul, you can look into equipment financing. Whether you need to update your computers, software, or secure data storage, equipment financing options can help. Typically, you can look into getting a loan or a lease.

When you get an equipment loan, the equipment you purchase is typically used as collateral. That can make this loan more accessible to borrowers. But it also puts the equipment at risk if you end up defaulting on the loan. In this case, the lender could seize the equipment. Another option is an equipment lease.

This type of arrangement is more like a rental agreement, but each lease is different. Going with a loan can ensure you have full ownership at the end of repayment. However, with a lease you may be able to avoid having equipment that is obsolete.

How to Apply for CPA Firm Financing

To apply for CPA firm financing:

1. Review your needs: Look at your business goals and needs. Decide which loan or financing option makes the most sense. Consider how the funds will help in the short term, while understanding how they will affect your budget in the long term.

2. Compare lenders: Whether it’s your local bank or credit union, an online lender, or the SBA, you have multiple options to consider. Compare lenders and review eligibility requirements, interest rates, terms, and any down payment minimums.

3. Prepare documentation: Lenders review your credit score, revenue, and time in business. Typically, you’ll provide supporting documentation as part of the application process. Gather your previous tax returns and financial statements to show proof of revenue. Though you’re applying for financing for your business, the lender may require a personal guarantee. In other words, you are ultimately held responsible for the debt you take on if the business can no longer pay it back.

4. Submit application: After choosing a lender and preparing your documentation, it’s time to apply. Depending on the lender, you may be able to apply online or in person. Go through each line carefully and review for any mistakes. Filling out the application completely may help avoid costly delays.

5. Get funds: If approved, you can access the funds to help your business grow. Have a clear plan for how to use the funds and monitor your expenses.

6. Repay: Any financing or loan option requires repayment. Don’t put your credit or business at risk. Always make payments on time, so that you stay in good standing. Check to see if the lender reports payment activity to the business credit bureaus, to help you build your business credit score.

Final Thoughts

Running an accounting practice can have seasonal ebbs and flows. During tax season, you may need to hire help or invest in new equipment or software. Other times, you may have a slower period and need to focus on marketing and managing your cash flow. Getting CPA firm financing can help you focus on your business needs and serving your clients.

FAQs About CPA Firm Financing

If you’re considering CPA firm financing, check out answers to common questions.

Can You Get CPA Firm Financing to Buy an Existing Accounting Firm?

You can get CPA firm financing and buy an existing accounting firm. You may be able to get a business acquisition loan or seller financing to facilitate the transaction.

Does CPA Firm Financing Require a Down Payment?

CPA firm financing can require a down payment, but it depends on the lender and the loan option. Check the various requirements with each lender and type of loan or financing option.

What Types of Loans for a CPA Firm Are Available?

CPA firms looking for different financing solutions can look into traditional bank loans, term loans from alternative lenders, SBA loans, and a business line of credit. Research each option to find a financing solution that matches your needs.

Where Can You Get Small Business Loans for a CPA Practice?

You can get CPA firm financing and loans from banks, credit unions, alternative lenders, and the Small Business Administration (SBA). Each lending option has different requirements, advantages and disadvantages, as well as processing and funding times.

What’s the Underwriting Criteria for CPA Firm Financing?

Each lender has different underwriting criteria to qualify for CPA firm financing. Typically, lenders look at your credit score, revenue, and your business track record when determining your eligibility. The underwriting criteria may also vary based on the type of financing.

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