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Author: |
Rob Stephens, Founder of CFO Perspective, Adjunct Instructor Gonzaga University |
Course Length: |
Pages: 26 ||| Word Count: 20,606 ||| Review Questions: 9 ||| Final Exam Questions: 15 |
CPE Credits: |
3.0 |
IRS Credits: |
0 |
Price: |
$26.95 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Accounting |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course provides essential knowledge about business loans, covering when and why loans are needed and how they are structured.
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Frequently Asked Questions: |
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Description: |
Business loans are a vital source of funding for cash flow management. The course begins with ratio analysis and cash flow projections to determine whether loan funding is needed. I then explain how leverage (the use of borrowed funds) magnifies returns but increases risk. We’ll then explore key loan components like different ways interest is calculated, types of fees, and the multiple terms that can be structured into a loan. Basic accounting entries and financial statement presentation, including footnote disclosure, are explained. You’ll discover ways to reduce the interest rate on your loan. I’ll give an overview of the application process and the documents lenders frequently request. The course explains the factors and ratios banks used to decide whether to approve a loan. Key documents that are signed at loan closing are described, and the importance of each is explained. I’ll point out important clauses included in these documents. The author has 20 years of banking experience, including being CFO of two banks, sitting on loan committees, and having a collections department report to him. He provides insights into how banks operate, key terms borrower miss, and tips to protect you or your client’s business. |
Usage Rank: |
37308 |
Release: |
2023 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
External: The Basics of Financing a Business
Internal: Business Loan Basics - v13 (Video course version)
Internal: Dealing with Debt and Interest - v14 (Course Id 2377)
External: IRS - Basic questions & answers about the limitation on the deduction for business interest expense (Section 163(j))
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
25-Oct-2025 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Business Loan Basics - v13 - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives
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Course Contents: |
Chapter 1 - Business Loan Basics Section 1: When and Where to Get Business Loans 1.1 Introduction 1.2 When Should You Get a Loan? 1.3 Cash Metrics 1.4 Cash Flow Projection: The gold standard for estimating your future cash needs 1.5 Cash Flow Projection 1.6 Leverage: Magnifying your Returns - and Your Risk 1.7 Where to Get Loans Review Questions #1 Section 2: Loan Terms, Interest, and Fees 2.1 Principal and Interest 2.2 Loan Terms 2.3 Types of Loans 2.4 Fees Review Questions #2 Section 3: Getting the Best Pricing and the Application Process 3.1 The Application Process: Navigating the Maze 3.2 Getting the Best Pricing You Can 3.3 Underwriting: How lenders determine if you qualify for a loan 3.4 Government Loan Programs 3.5 Loan Documents: Know what you're signing and what to pay attention to 3.6 Financial Statement Presentation Review Questions #3 Glossary/Index |
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