Virtual Accountant | How To Write The Company Overview Section
Even though there are many very important parts to a business plan says virtual accountant. Business owners need not overlook the importance of a properly written company overview section. This is the part of the business plan where the banks verify important information. That often specifies whether the business qualifies for the loan or not.
Therefore, if entrepreneurs fail to put some key information into this section. They might have their loan rejected. Without the underwriters even taking a look at the executive summary. And since so many entrepreneurs spend so much time on the executive summary. They need to do a little bit more work. To ensure that it is actually read
Many entrepreneurs simply put their business name and their contact information. But this is not nearly enough information for the bank. Virtual accountant recommends business owners putting the legal name and operating name into the company overview section.
The reason why is because business owners are very familiar with their business. And often use the legal name and operating name interchangeably. They must take into consideration that even if they are using a bank that is familiar with the business owner. The underwriter who ultimately makes the decisions. May not be as familiar with them.
Therefore, by putting the legal name and operating name into the documents. Can help the underwriter avoid being confused. If an entrepreneur does use either name interchangeably.
The business owner also needs to put all of the contact information for the business. Including phone number, address, email Jess and website if the business has one. If the business does not have a physical address yet. The majority shareholder can use their own address. Or the address they used to incorporate the business says virtual accountant. The underwriter is going to verify this information as factual. So it needs to be complete.
The next information that an entrepreneur should be putting into the company overview section. Is about the shareholders. This not only includes their names, addresses, phone number and email. But it also needs to include what percentage of the corporation is owned by each shareholder.
The banks will not award alone to multiple shareholders. Without first knowing what percentage of the company each shareholder owns. And while the bank might ask this at the end of the process. Before the award the loan. An entrepreneur can simply eliminate that need. And put that into the business plan initially.
Something else that a business owner should consider according to virtual accountant. Is what the name, practice, and contact information of the businesses accountant if they have one in place already. The reason why is because banks will see this as a lower risk.
The reason why working with an accountant makes a business and lower risk. Is because these businesses will typically have a more realistic cash flow projection. And a business plan that is going to help them succeed. In fact, having an accountant is so important. That simply by knowing they have one. Can make the bank more likely to loan them money.
How To Write The Virtual Accountant More Notes
Even though many business owners think that the most important section of the business plan is the executive summary says virtual accountant. They need to understand that the company overview section is extremely important as well. And it does not necessarily require as much information or as much time as the executive summary. A business owner needs to include some very vital information into this section.
After including the basic contact information of the business as well as all of the shareholders. An entrepreneur should include their insurance information. The bank will require an entrepreneur to have proof of general liability insurance. As a condition of getting approval for a loan says virtual accountant.
So if an entrepreneur already has general liability insurance for their business. They can put this information into the company overview section. Including the companies name, advisor, and contact information. Can let the bank know that an entrepreneur has this insurance. And make the bank more likely to approve the loan. Because of this important information being included.
Something else that an entrepreneur should think about is including their life and disability insurance information in the company overview section as well. The reason why, is because it is also going to be a requirement for the shareholders of the Corporation to have life and disability insurance.
The reason why this is so important. Is because if the entrepreneurs get sick or dies. The company is often not likely going to survive, especially when they are in the building stages. And so I having life and disability insurance. Can help guarantee the bank is going to get their money back. Even if the owners are unable to continue to build their business.
It is also very important that if an entrepreneur is using investments as a security towards their loan. They should include that information as well. Virtual accountant says it is important. Because the underwriter’s job is to help verify all of the information in the business plan. And by including the investment information. Can help make it easy for the underwriter? And make a business more likely to get the approval of their loan in the first place.
And finally, it is important that if an entrepreneur has a lawyer that they are working with. That they include this information in the company overview section as well. The reason why is because of the lawyer on behalf of the business owner. Must fill out important documents. Such as a personal guarantee, and security on property or equipment.
These letters must be registered and will be a requirement of finalizing the loan. If an entrepreneur is approved for their business loan. Therefore, by including the lawyer’s information. The bank can send those documents to the lawyer directly. And speed up the process of obtaining a loan.
By putting all of the most important information about the company into the company overview section. A business owner can be far more likely to get the approval that they need. So that they can get on with building their business.