Author: Rob Stephens
CPE Credit: 2 hours for CPAs
Business loans are a vital source of funding for cash flow management. This course begins with ratio analysis and cash flow projections to determine whether loan funding is needed. How leverage (the use of borrowed funds) magnifies returns but increases risk is explained.
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. An overview of the application process and the documents lenders frequently request is also given.
The course explains the factors and ratios banks use to decide whether to approve a loan. Key documents that are signed at loan closing are described, and the importance of each is explained. Important clauses included in these documents are also pointed out.
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 borrowers miss, and tips to protect you or your client’s business.
Publication Date: May 2026
Topics Covered
- Where businesses get loans
- Loan terms
- Types of business loans
- Loan underwriting
- Loan documents
Learning Objectives
- Explore different types of business loans
- Recognize key loan terms and their definitions
- Identify key loan documents
- Explain loan accounting and financial statement presentation
Level
Basic
Instructional Method
Self-Study
Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
