Virtual Accountant | Include This Information In The Company Overview
Business owners often look at the company overview section as an unimportant part of their business plan says virtual accountant. And they only put the company name, contact information and business owners’ contact information. But they should consider how important the section is. So that they know what information to include.
This is the section of the business plan that is going to be reviewed by the financial institution. As well as the underwriters. To see if the business owner has the necessary information in order to get approved for the loan in the first place.
If a business owner forgets to include important information. Or overlooks the importance of certain information. They may look at the company overview. And deny the application for the loan outright.
The first thing that a business owner should keep in mind says. Is that they need to keep in mind this is written for an external reader. They should not make any assumptions that any information is common knowledge.
When they put their companies information. They should include not just the operating name. But the legal name as well. And all of the complete contact information for the business. A virtual accountant says this includes the phone number, email address, and physical address. As well as the website if the business has one yet.
If there is no physical address of the business at the time of the loan application. The address that was used for the incorporation documents will be adequate. But business owners also need to keep in mind that the underwriter is going to verify all of this information. What needs to be complete as well as accurate.
The next thing that they are going to include in the company overview section. Are the names, contact information, and share information for all of the shareholders of the Corporation. If a business owner does not include the percentage of Corporation each of the shareholders has. This also might put the loan application in jeopardy.
Since banks will never loan money to multiple shareholders when they do not know what percentage of the corporation each of them owns. Virtual accountant says business owners also need to understand. That the underwriter is going to verify all of this information as well. So it needs to be as complete and accurate as possible.
If a business owner already has a corporate lawyer. They should include the lawyer’s contact information in the company overview as well. Because the corporate lawyer will need to fill out and sign important documents prior to the completion of the loan. Such as personal guarantees, and security on property and equipment.
If a business owner does not yet have a lawyer. It is often prudent for them to find one and include this in the company overview section. So that they can help the loan application process be as smooth and as timely as possible.
By understanding all of the important pieces of information that should be included in the section. Not only can help speed up the loan application process. But can help ensure that they can get the approval that they need. So that they can get the financing required to start their business.
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While the executive summary is very important says virtual accountant. Because it is going to show the bank all of the information they need to know. Order to consider if they want to loan money to a business or not.
However, the company overview section is important as well. Because the financial institutions often look at this section. To verify that the business has provided all of the information that is needed. To even qualify for the loan in the first place.
Therefore, if entrepreneurs do not have all information that is needed in this section. They may stall the loan application. By having the bank contact the business owner to give them a vital piece of information.
Sometimes, the application itself can be rejected outright. Because of the information that an entrepreneur has missed.
It is important that a business owner understands that the company overview section should contain more than just the contact information for the business and the owners. But it is a place for an entrepreneur to include information that is vital to getting the loan approved.
A great example of this is life and disability insurance says virtual accountant. It is often a covenant of getting a loan from a financial institution. So that the bank will be able to recover their money if an entrepreneur gets sick or dies.
They often will even require the business owner to guarantee that they will have the coverage ongoing. For as long as they are paying back the loan.
Including the life and disability insurance in the company overview section of their business plan. Can show the underwriter that the business owner has already completed this important requirement. So that they will be much more likely to be approved for the loan. And approved much quicker than they might without this information.
Another piece of important information that might get overlooked says virtual accountant. Is if a business owner is using their investments as security. Part of the underwriter’s job is going to be ensuring that those investments exist. So by including the information for those investments. Including their advisor and contact information. Can make it easy for the underwriter to verify.
Even including the entrepreneurs’ accountants, information can be very beneficial. Because banks often see working with accountants as a way to lower their risk. The reason why is because accountants can help entrepreneurs understand their finances.
In that can help them understand what they need to do in order to be successful in business. And that they will most likely have a realistic business plan and cash flow projections as well.
By including the entrepreneur’s accountant, as well as the accountant’s contact information. Can help increase their chances of getting approval for the loan. Because there seen as a lower risk than businesses who do not work with the accountant already.
By using the company overview section as a way of showing the bank all of the credentials that they have. Can help increase their chances of getting the approval that they need. As well as of help get that approval faster. So that they can start their business sooner.