CPA PRACTICE

We’ll Get You There

FREQUENTLY ASKED QUESTIONS

Why do CPAs need Oak Street Funding?
Certified public accountants have limited access to capital from banks because of the intangible nature of their assets. CPAs can borrow money from Oak Street Funding to grow their business based on the value of their future fees (i.e., monthly billings), even though they are intangible.
Why should I do business with Oak Street Funding?
Oak Street Funding has provided hundreds of millions of dollars to financial services professionals across the country since 2003. We are a technology-driven, niche commercial lender with an experienced team that is flexible, accessible and responsive. We can customize our loan structures to meet the growing demand for CPA financing. For us, it really is about the relationship and not the transaction. From the development to the eventual divestiture of your business, we’ll help you get there.
Is Oak Street Funding a direct lender?
Yes, we are a direct, non-SBA specialty lender. We provide in-house loan processing, underwriting and servicing. Your loan will not be sold to another organization.
What are the steps involved in obtaining financing from Oak Street Funding?
Step 1: The first step is an analysis of your cash flow that will be used as collateral for your loan by one of our sales managers. Step 2: Based on this review, we will propose preliminary loan terms. Step 3: Once you have agreed to preliminary terms, your loan coordinator will guide you in gathering all of the required documents for our underwriting team. Step 4: Once all required documents are received, you will be assigned an underwriter who will work through the due diligence process. Step 5: Once the loan documents are signed and approved, we will fund the loan proceeds.
How long will it take to put my financing in place?
All decisions are made by the Oak Street team which allows us to expedite the process for our borrowers. The amount of time required to complete financing depends on the timeliness of information provided by you and any respective parties to the transaction. Once all required documents are in, the approval process can be completed in as little as three weeks. More complex transactions may take longer to close.
What fees will I have to pay to complete a financing?
An estimation of costs associated with the loan are presented on our term sheets. Once you have reviewed and agreed to the quoted terms, we require a non-refundable, good faith deposit which will be credited towards your closing costs at funding. There is also an origination fee that varies depending on the size and terms of your loan, as well as any third-party costs such as a UCC filing fee, legal fees or a valuation fee.
What if I do not like the financing alternatives presented to me?
Before beginning the underwriting process, we determine the type, purpose and costs of financing, and discuss the structure with you. We are very straightforward about what is and is not possible. You are not required to accept any financing offer.
What is your interest rate?
We take a risk-based pricing approach which encompasses a number of factors including a cash-flow analysis, a leverage component, credit health, and an overall review of the firm’s business performance.
What length of terms do you offer?
Our terms vary by product, but the typical range is 7 to 10 years for CPA loans.
Can I borrow additional funds before my loan is paid off?
Yes. Many of our customers have found this to be an excellent way to take full advantage of the value of a growing business. Several of our borrowers have requested a second or even third loan. When they understand how easy the process is, they tend to return to Oak Street Funding.
What ongoing commitments will I have with Oak Street Funding once I have a loan funded?
CPA customers are required to submit their billing statements, so Oak Street can reconcile the recurring revenue on a monthly basis.
How can I use my funds?
When borrowing money from Oak Street Funding, your funds must be used for business purposes such as acquisitions, successions, working capital and debt restructuring.

FEATURED BLOGS

Capitalizing your CPA practice’s succession plan

If you’ve developed a plan to address the future viability and ownership of your CPA practice, congratulations. You’re ahead of most practices. But having a plan to govern who may become partners or how they’ll be selected is only part of what you need to consider....

Are you creating a legacy or capital?

As a longtime partner in your CPA practice, you’re proud of your professional expertise and what you’ve been able to accomplish. Whether you took the step of becoming a partner to have a bigger say in how your practice serves its clients, to gain a greater reward for...

A simple map for partner buy-ins

A simple map for partner buy-ins Typically, CPA firms devote a great deal of thought to partner retirements. That’s no surprise, given that most CPAs work hard throughout their careers to ensure they are able to make the most of their post-retirement years. But it’s...

Mandatory buyouts: when it’s time for a partner to go

We all like to think that we’ll know when it’s time for us to walk away from work for good. In fact, many of us are so eager for the things we’ll be able to do when we retire that we look forward to it. Some obligatory lunches with longtime colleagues, transition...

Have questions? Talk with our experts for more information.