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The first thing that they should take into consideration. Is that the company overview should be written to an external reader. So that they do not assume any information is not needed. For example, not nor needs to include both the legal name of their business. As well as their operating name in order to avoid confusion.
The next thing that they should include is the physical address of the business, phone number, and email address. As well as a website if the business has one yet. Should keep in mind that the underwriter of a financial institution is going to verify all of this information. So it needs to be as complete and accurate as possible.
If a business owner has not opened the doors to their business yet. They might not have an actual physical address of the business yet. But they can use the principal shareholder’s address. Or whatever information is on their incorporation certificates.
The next thing that business owner should be including in the company overview section of their business plan says virtual accountant. Is all of the complete names, addresses, and contact information for the shareholders.
If there is one shareholder. Virtual accountant says they need to ensure that all of the information they give is complete. And if they have multiple shareholders. In addition to this information. They need to be including what percentage of the corporation each shareholder has.
They need to keep in mind that the underwriter will not approve the loan for business if they do not have all of this information. And if an entrepreneur misses any piece of it. They may either slow down the process of getting an approval. Or the underwriter might reject the application completely. Requiring the business owner to start again.
After they have included their contact information for the business as well as the shareholders. They need to include other important bits of information that are going to be necessary to complete their loan application.
For example, the bank will require the business to have general liability insurance in order to approve the loan. And if the business owner already has this. They should include the insurance company’s name, contact information, and policy number. So that the financial institution can therefore the information. And know that one of the important requirements has been fulfilled.
If a business owner does not have general liability insurance yet. They might want to consider obtaining it so that they can be more likely to get the loan approval that they need to start their business.
When entrepreneurs understand that the company overview section is for more than just the names and addresses of the business and owners. We will be able to put more care into filling it out. And be far more likely to get the important loan approval.
While many business owners put a lot of effort into the executive section of their business plan says virtual accountant. They need to avoid overlooking the company overview section as well. While the executive summary is going to contain a synopsis of the most important aspects of the business plan.
The company overview section tells the bank some vital information they need to know in order to approve the loan. By missing some of the information that they could put here. Often puts their chances of getting approval in jeopardy.
After they have filled out the information such as their company’s name, address, and contact information. As well as the name and contact information for each of the shareholders. Business owners can consider all of the other business professionals they work with. In all of the various insurances they have. That can help their chances of getting an approval.
For example, if a business owner has worked with an accountant. Either to complete their business plan or cash flow projections. Virtual accountant recommends including this in the company overview section.
The reason why is because it can indicate that they are a lower risk. Because they will have a well thought out business plan that can help them succeed. And that their cash flow projections are likely going to be not only accurate but realistic as well.
By including the name, company, and contact information for their accountant. Can help increase their chances significantly of getting the loan approved by the underwriter.
Another important business professional should include in their company overview section. Is there a corporate lawyer. This is important to include says virtual accountant. Because the lawyer will be needed to complete important paperwork. Such as personal guarantees, and security on property and equipment.
If the business lawyer is included in the company overview section. The underwriter will be able to get all the important documents to that lawyer much faster. So that it can speed up the loan application process.
Banks also typically acquire each of the shareholders to have life and disability insurance. And to hold that insurance for as long as they are paying back the loan. The reason why is so that the bank get their money back if something happens to the business owner.
If the shareholders already have life and disability insurance. Including that information here can increase their chances of getting the loan approved. And if the shareholders do not have life and disability yet. Getting that and then putting the information into the company overview section. Can increase their chances significantly.
Since business owners often have put so much time and effort into their business plan. And needs financing in order to start their business. They should do everything within their power to maximize their chances of getting the loan approved.
Business loans are also notoriously slow. So anything that they can do to help speed up the process. Can help them get that approval sooner.
