How to Get a Business Loan for Your Accounting/Payroll Business

Managing other people’s money for a living as an accountant or third party payroll company representative seems easy as pie. To do this for your own business and finances could seem foreign.

You too can get your business finances in order-just how you help better your clients’ finances in your career-by following these simple steps to get a loan for your accounting or payroll business.   

  1. Assess what type of loan you need.
  2. Go over your finances.
  3. Collect the necessary documentation to apply for the loans.
  4. Apply for the loan(s) you need.

Check out Merchant Advisors for more information on this overall process.

 1. Assess What Type of Loan You Need

Every loan type is different. You must compare and contrast:

  • The amount of each loan type you need.
  • The interest rate on the loan.
  • How long the creditor allows you to pay the loan off.
  • How quick you are able to access the loans.

A Credit Card for Your Business

How to Get a Business Loan for Your Accounting/Payroll Business

Business credit cards not only help you get the loan money you need for your business, but you can receive great perks depending on the credit card you choose. You could earn cash back on your purchases when buying supplies and other services for your business.

Be sure to compare and contrast other perks your business credit card could have such as:

  • Introductory interest rates.
  • Cash back percentage.
  • What types of purchases in which you can receive cash back (or if all purchases qualify).
  • Annual fees for having the credit card (if applicable). 

Business Line of Credit

A business line of credit is much like a credit card, except this comes from an online lender. You can secure a business line of credit that ranges anywhere from $1,000 to $250,000. The best part about this type of small business loan is that some of the lower credit limits do not require any source of collateral when applying for it if you cannot pay the balance off. This unsecured loan will be more convenient for you, so that you do not have something valuable on the line just to be able to borrow money.

If you have a business line of credit on the higher side, it may require you to put up some sort of collateral such as valuable real estate or your bank savings. This is called a secured loan because the collateral will be used to pay for your line of credit if you cannot keep up with the payments.

 Small Business Administration (SBA) Grants or Loans

As a small business owner-especially as a Sole Proprietor-you have access to loans from the Small Business Administration to help you kickstart your payroll and accounting business.

Analyze the types of loans and grants in which you are interested in applying by visiting While you do not have to pay back any grants in which you are approved to receive, this is another form of important funding that you should not pass up. Trying for the opportunity with the possibility of earning a business grant that you do not have to pay back is better than not trying for the opportunity at all.

Do not just rely on being approved for the grants in which you apply. Try for the SBA loans as well for more chances in getting the financing that you need for your accounting or payroll business.

Keep in mind that SBA 504 loans have fees paid to certain entities before the rest of the lump sum arrives to you in your business bank account including:

  • Guaranty fees paid to the SBA.
  • Fees paid to the agent handling your application.
  • The CDC receives part of the loan in the form of fees.
  • A treasury bond rate based on the amount of time that will be taken to pay off the SBA loan.

For more information about the 411 on SBA loans, visit NerdWallet.

While SBA loans offer loans with much lower interest rates than that of local banks, the application process can be time-consuming. For the best results, get started on the application process sooner rather than later so that you can receive financing in time for your planned grand opening day.

 Traditional Business Loan

A traditional business loan can be secured from your personal or business bank. Just keep in mind that a traditional business loan from a bank will have higher interest rates than that of a SBA loan. However, even with these higher interest rates, you are able to get the financing that you need much quicker if you are in a pinch with time.

Check out what types of loans are available for your business.

 2. Go Over Your Finances

Go over your finances, so that you are informed on your business forecast. Ask yourself and answer these questions.

  • What is your business stream of income?
  • What is the value of your assets?
  • How much liabilities must you pay per month?
  • Do your liabilities exceed your monthly income?
  • What can you do to increase your income to offset your high amount of liabilities?

Once you have asked yourself these questions and answered them, document them in a journal and/or a typed document to assess where you are financially in your accounting or payroll business currently.


How to Get a Business Loan for Your Accounting/Payroll Business

Your assets include cash on hand, business checking and savings accounts, machinery for your business, inventory, and accounts receivable.

Liquid assets would be your cash on hand and whatever money is in your business checking and/or savings accounts because they can be used at any time to satisfy expenses and purchases for your business.

Fixed assets include the machinery, furniture, vehicles, and real estate connected to the business.

Accounts receivable is the amount of money that clients owe you in the future. For example, if you have 5 clients in which you just provided accounting services and your service fee will be paid to you once their taxes have been approved by the government, this grand total will be included in the accounts receivable portion of your asset portfolio.


Liabilities include any monthly payment responsibilities that you satisfy to run your business. This includes:

  • Monthly rent (if you have an office space).
  • Utilities for your office space (if applicable).
  • Monthly business credit card or loan payments.
  • Any legal related debts.

 3. Collect the Necessary Documentation to Apply for the Loans

There’s documentation required to apply for a business loan for your accounting or payroll firm. Be sure that you have on hand:

  • Documents to identify you such as driver’s license, SSN card, and the like.
  • Bank statements from the last 90 days.
  • Financial statements for your business:
    • Accounts receivable report.
    • Balance sheet.
    • Budget report.
    • Cash flow statement.
    • Income statement.
  • Personal and/or business tax returns from the prior 2 years.
  • Any permits or licenses for your business
    • Business license.
    • Sales tax license.
    • Accountant or payroll consultant credentials.
  • Any legal agreements related to your business.
  • Statement of business ownership.

 4. Apply for the Type of Loan(s) You Need

Once you have decided what type of loans will fit the needs of your business the best and you have gathered the necessary loan documents, go ahead and apply for them. Apply for a few at a time, so that you are not relying on just the approval from one of them to be able to get your financing.

Frequenlty Asked Questions

How Much Insurance Do You Need For Your Accounting and Payroll Business?

1. What type of SBA loan funds a small business accounting service?
The SBA 7(a) loan is usually what is given to small business accounting services contingent upon the business owner having an acceptable credit score and enough assets to cover the payments.

2.How do I become a Certified Public Accountant (CPA)?
Become a CPA by:

  • Study accounting via classes and general practice in the field.
  • Sign up for a CPA certification program.
  • View your state’s licensing requirements to see how many semester hours and field work hours you must serve in order to be awarded your certification.
  • Satisfy these above requirements and then take your CPA exam.
  • Pass the CPA exam and receive your certification.

To learn more on how to plan your own payroll and accounting business click here!

Please note that the contents of this blog are for informational and entertainment purposes only and should not be construed as legal advice. Any action taken based on the information provided in this blog is solely at your own risk. Additionally, all images used in this blog are generated under the CC0 license of Creative Commons, which means they are free to use for any purpose without attribution.