Virtual Accountant | How To Write A Company Overview
One mistake that entrepreneurs often make when completing their company overview says virtual accountant. It is not taking the time to consider all of the information that should be included in this important section of their business plan.
They may put a lot of time and effort into the executive summary. Making every effort to put as much information as their financial institution will need. In order to make their decision on whether to approve their loan or not. But the company overview section is just as important.
This is more than just the section that the entrepreneurs can put the name and address of the business and shareholders. It is an opportunity for business owners to specify all of the people that are going to help make the business successful.
And while the name and address and contact information of the business is very obvious. Virtual accountant says business owners need to ensure that they are putting both the legal and operating name of the business. As well as all of the contact information. Including website, if there is one. As well as the address, phone number, and email address.
The bank underwriters are going to be verifying all of the information. So giving them as much information as they can will help speed up the process. Since the underwriter will have to go searching for all of the information.
Business owners may also know that they need to put their own names, and contact information into the company overview section as well. But they need to ensure that if they have business partners, they also include their contact information. And what percentage of the corporation each of the shareholders owns.
If this information is missed, it may compromise the ability to approve the loan. Because the bank will not loan money to an organization if they do not know all of the shareholders, and if they do not understand what percentage of ownership each of them has in the corporation.
This is often where a lot of business owners and the company overview section. But virtual accountant says putting even more information here can make it easier for the underwriter to do their job. Of ensuring that the business has everything that they deem necessary in order to grant a loan.
A great example of this, is quite often the banks will require each of the shareholders to hold life and disability insurance is a requirement of getting the loan. If the shareholders do not already have life and disability. Before they will get the final approval. The shareholders will need to get this important insurance. And then send proof to the bank.
If they already have this personally. They should include what their policies are. As well as the company they are insured with, the advisor, and the advisor’s contact information as well.
This will help the underwriters understand that they already have completed a requirement even before they have received the loan. Often, they will also ask the shareholders to sign a guarantee that they will continue having life and disability. For the length of the term of the loan.
The more information a business owner can put into the company overview section of their business plan. The less work the underwriter is going to have to do to ensure that they have all of the requirements of getting approval. This means that it can not only speed up the process of the loan application. But be far more likely to get the loan in the end.
Write A Review On Your Virtual Accountant
If business owners do not understand exactly how important the company overview section is says virtual accountant. They may not put as much effort into it. That can compromise their ability to get approval for their loan.
The reason why is because the company overview section is the business owner’s opportunity to share all of the key people that they have consulted with. In order to help them get them to the point that they are at. This includes including their accountant, lawyer, and investment advisor just to name a few.
The reason why they should put their accountant information into the company overview section says virtual accountant. Is because this often indicates that a business owner has a realistic business plan. As well as accurate cash flow projections.
Banks and underwriters often see this as a risk mitigation factor. And when business owners can indicate that they have been working with an accountant. That will make the loan application much more attractive to approve for financial institutions.
The reason why a shareholder should include the name and contact information of their lawyer in the company overview section. Is because in order to finalize the loan application. Lawyers will need to complete paperwork including security on property and equipment. As well as personal guarantees.
When they include their lawyer’s contact information. The banks will be able to send the information directly to the lawyer. Get them to fill out the appropriate paperwork. And can help speed up the loan application process. Since loan applications can often take a long time. Even several months says virtual accountant. Speeding up this process is often very important to do.
Even including their investment advisor is important. Especially if they are using their investments as security. This is an important step because the underwriter will need to verify the investments. So the easier that a business owner makes it for the underwriter. The faster the loan application can get approval.
Underwriters might even look at all of the loan applications that they have in front of them. And the one that makes it the easiest for them might get approval. Because it means less work for the underwriter. This is extremely important information. So the business owner should take time to consider all of the information that can be included in this section.
Since the company overview section is going to go right after the executive summary. And will often be read in order to determine if the business owner has all of the information they need to even get the loan application approved. By ensuring that they have this filled out as completely as possible. Can help the bank underwriter decide if they have enough information to even be considered for the loan.