business line of credit/loan for small cash business

[seanp108]

Hi guys,  I have a small f&b business for 5 years and a registered company, accountancy firm with all records etc. etc...but i operate with cash and the only real income proof is

credit card statements or accountants could show cash receipts (not sure how much weight that carries with bank loans).  Any tips on how to get a line of credit/small loan?  Should i change my accountants to a firm more familiar with getting bank loans? if yes, any recommendations?..It would be a challenge to deposit daily cash income and withdaw cash every day but if thats a solution i would run with it but any advice from small business owners would be really appreciated.  Thanks, Sean ps...as a newbie I hope this is the right forum to post this.

[SiSePuede419]

I had to look up "f&b", LOL.

 

OK.  Here's a basic principle of business.

 

Either your business makes money or it loses money.

 

I think we can all agree on that.

 

If your business makes money, then you SAVE the money you make.

 

If you want to buy something for your business, you keep saving until you have enough money to buy whatever it is you want.

 

That's called REINVESTING the profits.

 

You don't need a loan.

 

If you're not making a profit and are LOSING money, then it's BAD BUSINESS for anyone to give you more money.

 

You don't need a loan, just a seminar on basic business principals.

 

So....just a wild guess.

 

Where is your "beer bar" located? ?

[Suradit69]

1 hour ago, SiSePuede419 said:

OK.  Here's a basic principle of business.

A lot of very profitable businesses borrow money or issue debt. Even Apple and Microsoft have debt. If borrowed money produces profit exceeding the cost of debt, it can be a smart move. Of course, if you're a small business with no proper record keeping, you'd probably be refused a bank loan or be charged a rate that would exceed the return it generates to the business.

[seanp108]

Thanks guys  - i think most business operate with some kind of credit line and im making good money but the problem is timing and cashflow or liquidity.  Was just wondering if you had a good accountant or tax person who could structure the books/process in such a way that the banks would entertain.  But appreciate the feedback and not a beer bar