Tie Your Finances Tight, Untie Them! The Importance Of Senior Management

Will high interest rate loans plunge you into an endless whirlpool?

Strategic business growth starts with good financial conditions, and loan management is no exception. Repayment of loans is a huge source of pressure for many business owners, but tying your financial situation may mean the difference between constantly borrowing money from your borrowers and taking your company to a new level.

The question is, do your accounting systems and procedures meet the standards? If not, you are likely to pay more than you should.

Blueprint’s CFO team can help! Here is an example.

When Blueprint CFO started to cooperate with local construction supplies subcontractor customers, the company obtained three outstanding loans, including loan # 1(annual interest rate 40%), loan # 2(annual interest rate 55%) and loan # 3(annual interest rate 25%). As the company repays the loan every week, they still have cash flow problems. The company also found that it was caught in the endless loan cycle of Article 22 of the Military Regulation, borrowing at a higher interest rate and repaying previous loans. It seems that there is no end in sight.

Blueprint’s CFO team found that the company’s accounts were not properly prepared when auditing customers’ financial conditions, so it encountered many problems, including difficulties in loans. Quickbooks Desktop is used to issue invoices and invoices, but the company does not unify the records of costs, assets, equipment rents, etc. In addition, their bank accounts have not been checked for three years.

The Blueprint CFO team responded to this in a number of ways.

First, by transferring company numbers from the Quickbooks desktop to Quickbooks Online, we improved automation and created an up-to-date view of relevant data. This enables customers to clearly understand their own records, thereby formulating a new financial strategy, that is, a strategy that really brings growth and profits.

Then, we produced highly complete financial statements and records to improve the bank’s confidence in the company. Therefore, the inter-bank lending rate of the Bank of London is+2% for loans from a regional bank, and it is interest free in the first year.

As a result, the company can repay all outstanding loans, saving $150000 in interest expense in 2021. With the new financial situation, our customers are now eligible to apply for PPP loans and new California grants.

All in all, Blueprint’s chief financial officer, Locksta’s accounting team, can reorganize customers’ accounts and reconcile bank and credit card accounts, saving hundreds of thousands of dollars. We can do the same for you! Blueprint’s CFO and all star accounting team can ensure appropriate systems and processes through our symbolic profit roadmap formula to help the enterprise achieve success.