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Virtual Accountant | Important Information To Include In A Company Overview

There are many important parts of a business plan says virtual accountant. And while many business owners spend a lot of time ensuring their executive summary is perfect. Business owners should not overlook the importance of the company overview section.

This section is often read by the banks and underwriters. In order to make the decision if an entrepreneur and their business qualify for the loan in the first place. If certain information is missing from this section. It can either delay the loan approval. Or cause it to be outright rejected.

Often, a lot of information about the company an entrepreneur takes for granted. That they know the information. Or that their bank already knows the information. Because they are familiar with their banker.

Unfortunately, it is typically not the banker that approves loans. But it is the underwriter, who is typically less familiar with the business owner and their business. And they are expected to be impartial.

Therefore, the more factual information they can include the business, the easier it is going to be for the underwriter to verify that information. And understand if the business owner qualifies for the loan.

Therefore, a business owner needs to ensure that they are putting in all of the information about their business as possible. Starting with the legal name as well as the operating name of the business says virtual accountant.

This is going to help ensure that they minimize confusion. Especially if the entrepreneur has used both the legal name and operating name in different parts of their business plan and executive summary.

The business owner should ensure that all of the contact information for the company is present. Including the address of the business. And if the business is not yet open. They can use the shareholders’ addresses. Or the address used in the incorporation documents.

Next, is the business’s phone number, email address, and website if it has one. And business owners should keep in mind that all of this information is going to be verified by the underwriter. So needs to be accurate.

Following the company information is the information about the business owner themselves. If there is only one shareholder, then that means the should include their name, address, phone number, and email address.

But if there is more than one shareholder, they need to include all of that information for each of the shareholders says virtual accountant. As well as what percentage of shares each of the shareholder owns.

This information is extremely important for the bank to know. Because there is no way that the bank will be able to lend funds, without knowing which shareholders loan what percentage of the corporation.

By including this extremely factual information in the company overview section. Can help ensure that the underwriter is able to verify the information is accurate. Which will help them ensure that the business qualifies for the loan in the first place? That they can move on to the executive summary of the business plan, and reading and understanding that.

Important Information From The Virtual Accountant!

While the executive summary of the business plan is important says virtual accountant. Because it summarizes all of the most important parts of the business plan itself. The company overview is important because it contains factual information about the business itself. That is needed in order to qualify for loans.

However, the purpose of the company overview section is not just to qualify for the loan. It is also going to help an entrepreneur ensure that they have all of the requirements needed by the bank when they are approved for the loan.

And can also help the underwriter understand the business. So that they can make the decision on if the bank is willing to loan money to the business, and how likely they are going to be at getting the money back as well.

One important thing to include in the company overview section says virtual accountant. Is the business owner’s accountant, and their contact information. The reason whites important to include this is that banks often see working with an accountant as a way to minimize that business’s risk.

The reason why working with an accountant minimizes risk. Is because the business owner will be likely to have accurate cash flow projections, realistic business plan as well as a business professional that will help them understand their finances. So that they can be more likely to hit their financial goals. And grow their business.

Therefore, if an underwriter sees that a business owner has an accountant that they are already working with. Not only are they going to be more likely to approve the business for the loan. But understand that the bank will be more likely to get their money back as well.

Another business professional that an entrepreneur should include in the company overview section of their business plan. Is if they have a business lawyer already. This is very important because banks will need to have important paperwork filled out. And documents signed and registered. From security on property and equipment to personal guarantees.

By including the business lawyers’ name, practice, and contact information. Can help speed up the approval process. Having the bank contacted the lawyer directly. In order to have these important documents signed and registered.

Also important that an entrepreneur includes all of the information about the securities that they are using to obtain the loan. So that they can prove to the bank that they have the securities they need. And make it easy for the underwriter to verify those securities.

By including as much information as possible into the company overview section. This is owners can help increase their chances of getting approval for their loan. As well as help ensure that they are expediting the process as quickly as possible.

Virtual accountant says this is important, often because entrepreneurs typically are holding off on important aspects of their business until they get the loan. And the sooner they can get the approval and their money. The sooner there able to proceed with all of their plans.