Virtual Accountant | How To Write The Best Company Overview
While the executive summary includes the most important parts of the business plan, summarized says virtual accountant. Business owners also need to understand that the company overview section. Is very important as well. Because it includes all of the most important information about the company itself.
And while many underwriters look only at the executive summary in order to make their decision. On whether to award a business alone or not. They often look at the company overview section. In order to verify that the business qualifies for that loan in the first place.
Therefore, a business owner needs to be very careful about including as much information in the company overview section as possible. To help them qualify for that loan. So that they can have their underwriter look at the business plan itself.
Many entrepreneurs simply put the company’s name, and then their own name and contact information in this section. But there is so much more than they can put into this document. If they think of it as a way of helping them qualify for the loan. They might be a bit more careful in all of the information they include.
For example, they should include not only the operating name of their business. But the legal name as well. Not only because the bank is going to need this information to drop the paperwork for the loan. But because often, a business owner uses the legal name and operating name of the business interchangeably in the business plan.
And because the underwriter is often the one looking through the business plan. In order to award the loan or not says virtual accountant. Minimizing confusion by including both names is very important. And can help them qualify for the loan. Because the underwriter will not be confused.
The next thing that they should include is all of the contact information for the business including an address. The underwriter will also verify all this information as factual. Making it important that it is accurate. But if an entrepreneur does not have a physical address of their business yet. Virtual accountant recommends putting the majority shareholders’ addresses. Or, the address that they used on their incorporation paperwork.
Next, is the information about the business owner themselves. Or business owners if there is more than one. This includes their name, address, and phone number, and email address. But also, if there is more than one. What percentage of the shares they own in the corporation.
The bank will not loan money to multiple owners. If it is not specified what percentage of the corporation they own. Making this one of the most important but often overlooked parts of the company overview section.
This is some very basic but very important information to include in this section. And while it should not take an entrepreneur long to write an effective and well-written company overview section. Virtual accountant says out this information, a business owner may not have their business plan read.
How To Help Others Like Yourself Find A Virtual Accountant?
Often, by the time an entrepreneur is ready to submit their business plan to a bank in order to get approval for a loan says virtual accountant. They have spent hundreds of hours on it. And have read and reread their executive summary. To ensure that it has as much information as they need to get the loan more likely to be approved.
However, any entrepreneurs often overlook the importance of the company overview section. But this is an important part of the business plan. That can often help a business qualify for that loan. Even before the underwriter starts looking at the executive summary.
Therefore, a business owner should understand what other pieces of information besides the company name address and business owner information. That should go into this section of their business plan.
A business owner might want to include all of the insurance information for the business. Knowing that there is no way that a bank will own money to a business if they do not have general liability insurance. And while some banks will approve the loan, under a condition of getting this insurance.
It can help the business qualify for the loan in the first place. If the not only have that insurance. But provide proof of that insurance as well. Therefore, virtual accountant says business owners should include the name of their insurance company, the advisor they use, and their contact information in this section.
The same is true for a business owner having a life and disability insurance. This is often a covenant of qualifying for a loan. Because it is going to be what helps guarantee the bank will get their money back if the business owner gets sick, injured, or dies.
By including the life and disability information into the company overview section. Can help the bank understand that they have already achieved an important requirement of getting the loan.
It is also quite likely that a business owner will need to put up property or investments as a security of the loan. And they should include the specifics on those securities in the company overview section. Therefore, the underwriter will be able to verify the information that those securities are owned by the business owner. And make the bank more likely to approve the loan.
If an entrepreneur is using investment as security. They should include not only the specifics of the investments. But the advisor they use, the company, and the advisor’s contact information.
And, since an entrepreneur will need to complete important legal paperwork as a condition of their loan getting approved says virtual accountant. Including that lawyers contact information, name, and practice in the company interview section. Can help ensure that the bank understands who they can talk to when they are ready to proceed with the next parts of approving the loan.
By understanding all of the information that can or should be included in the company overview section of the business plan. Can help ensure that an entrepreneur has as much information as the banks need. To be able to be awarded the loan. And then once they are qualified, the underwriter will be able to look at the merits of the business plan itself. Knowing that if they like what is written in the business plan. They will be able to approve the loan for the business owner.