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A great company overview section can only help speed up the loan approval process says virtual accountant. But can actually help an entrepreneur get the approval that they are looking for. Which is going to help them avoid getting rejected without knowing why.
One mistake that many business owners make is they think that the executive summary is the only part they need to spend time on to get approval for a loan. While banks and underwriters typically look at the executive summary to make the decision on whether they want to loan money to the business or not.
The company overview section is important to give the banks the information they need. In order to understand if the business actually qualifies for that loan or not in the first place.
Therefore, it is extremely important that an entrepreneur is putting as much information as needed in the section. For the banks to make that decision says virtual accountant.
This means that when they are putting the company’s information. Need to ensure that they are putting the operating name as well as the legal name. And all of the legal contact information for the business.
Many business owners do not include the address, because the company is not an operation yet. And they might not even have a location. But if this is the case, they need to be including the address used on the incorporation paperwork. Or of the principal shareholder.
The bank will not be able to process the paperwork for the loan if there is no address to put on the application. Also important for the business owners to include the phone number, email address, and website if they have one.
Also important for the business owner to include their own name and contact information. And if there are any other shareholders, those shareholders need to be included in the company overview section as well. Virtual accountant says business owners also include what percentage of the corporation each of the shareholders owns. Because that is vital information that the bank is going to need.
And while this information is very important in order to qualify for the loan. Business owners also need to ensure that there putting information into this section. That can help them convince the underwriter. That they should be loaning money to the business.
When way they can convince the underwriter of that, is by putting the name and contact information of their accountant into the company overview section. The reason why is because many banks consider working with an accountant is a way of lowering the business’s risk.
The reason why an accountant lowers a business owner’s risk. Is because the accountant typically helps entrepreneurs have accurate cash flow projections, realistic business plans. And can help the business owner understand their finances. So that they know what their revenue needs to be at in order to succeed. And can make more informed financial decisions that will help them grow.
When business owners understand how important their company overview section is. They will be able to put the information needed in the section. That is going to be able to help them qualify for the loans. As well as help expedite the process.
A company overview section of the business plan is very important says virtual accountant. Because not only can they help an entrepreneur get approval for a loan. They can help speed up the process so that they can proceed with their business plans quickly.
This is extremely important for most business owners to know, especially since 51% of all small businesses seek external financing for their business.
It is important for business owners to put in all of their business advisors into this section. So that the bank can understand all of the professionals that are going to be working with the business owner. In order to help them grow their business.
A business owner who is working with the business lawyer should include their business lawyers’ information in the company overview section. This is also important says virtual accountant. Because a bank is going to require a number of legal documents filled out as part of the loan approval process.
Since business owners not going to be able to use the lawyers of the bank in order to fill this paperwork out. By including the contact information of their lawyer. Can help a bank’s end of the information sooner. So that they can get it back in a timely fashion.
This includes needing personal guarantees, security on the property as well as equipment. To sign, and register the documents. The sooner that these documents can get prepared and filed. The sooner the loan can be processed, and given to the entrepreneur.
If a business owner has used their investments as security for the loan. Including the advisor’s name, company and contact information is extremely important as well. The reason why says virtual accountant is because the banker or underwriter is going to need to verify the investments. So that they can be used as security for the loan.
By including this information upfront, can make it very easy for the bank to verify the information. So that they can speed up the processing of the loan.
Business owners can also feel free to put the insurance of the business into the company overview section. Especially since the bank is going to require proof of this in order to finalize the loan. So by putting it up front in the overview section. Can help ensure that they have all of the requirements in place to be able to qualify for that loan.
These are some of the important things that they can include in the company overview section. So that they can ensure that they meet all the requirements for the loan. And when they do, the underwriter will be able to move more quickly onto the executive summary of the business plan.
In order to make the decision on whether they would like to support the business with a long, or if it does not meet their mandate.
