Your Business News

Outsourced business model seen as a plus by lenders

October 19, 2023

Authored by RSM Canada LLP

Ian L. FitzPatrick, CPA,CA, CBV shared this article

ARTICLE | October 19, 2023

Flexibility is the name of the game for midsize companies trying to maintain operational efficiency amid inflationary cost pressures and sharply higher lending rates.

At a time when new loans are under significant scrutiny, the ability to quickly scale a business up or down as demand dictates can be seen as a positive in the eyes of lenders.

Beth Johnson, a technology consulting principal with RSM, says the flexibility gained through strategic outsourcing often demonstrates that a business is nimble enough to ride out economic volatility due to its ability to pivot quickly when market conditions change.

Outsourcing specific functions ranging from IT, finance, risk and operations allows companies to keep their eyes on the prize—strategic growth for their core business. 

“It gives you a lot of agility,” says Johnson, whose clients include banks, credit unions and other financial institutions. “If you have to tighten your belt, if your loans are going to cost more money, you are not pigeonholed by your business model.”

Johnson highlights just a few of the benefits of strategic outsourcing:

  • Consistent service: “Your costs can flex up or down, based on seasonality,” she says. “Take a block of 1,000 hours to use at your discretion and consume it as you go.” Outsourcing provides consistent service, month after month. Third-party providers are specialists in their fields with well-defined, standardized processes for their offerings, and they can quickly scale with the needs of the business amid fluctuations in demand.
  • Limited compliance: “If you outsource a compliance function, 99% of the time you’re not going to get over scrutinized by regulators,” Johnson says. Outsourcing compliance-heavy functions can take the bulk of the regulatory burden to the third-party provider, freeing the core business from potential scrutiny. Providers have specialized knowledge of their service and are responsible for staying up to date when changes in regulations arise.
  • Shared risk: “There is shared responsibility,” she says. Using an outside provider for cloud-based information storage, for example, reduces the risk profile of the business because both parties share financial and operational risk through pre-defined contracts and other agreements. Some providers may carry insurance that can mitigate potential losses.

Let's Talk!

Call us at 1 855 363 3526 or fill out the form below and we'll contact you to discuss your specific situation.

  • Topic Name:
  • Should be Empty:

RSM Canada Alliance provides its members with access to resources of RSM Canada Operations ULC, RSM Canada LLP and certain of their affiliates (“RSM Canada”). RSM Canada Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM Canada. RSM Canada LLP is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms. Members of RSM Canada Alliance have access to RSM International resources through RSM Canada but are not member firms of RSM International. Visit for more information regarding RSM Canada and RSM International. The RSM trademark is used under license by RSM Canada. RSM Canada Alliance products and services are proprietary to RSM Canada.

FCR a proud member of RSM Canada Alliance, a premier affiliation of independent accounting and consulting firms across North America. RSM Canada Alliance provides our firm with access to resources of RSM, the leading provider of audit, tax and consulting services focused on the middle market. RSM Canada LLP is a licensed CPA firm and the Canadian member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM Canada Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.

For more information on how FCR can assist you, please call us at 1 855 363 3526

Important Notice:

FCR will now redirect you to CCH Portal where your FCR Client Portal login is located.

Share This