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In fact, it is extremely important that an entrepreneur knows all of the information that should go into a company overview section of their business plan. So that they can include that information. And be more likely to get there loan approved. Then if they did not have that information in the first place.
In order to qualify for a loan, the business owners need to give the bank vital pieces of information including all of the contact information for the business, the business owners, and ensuring they have all of the requirements for getting the loan approved.
Virtual accountant says this means including all of the business professionals that an entrepreneur might already be working with. Information on all of the insurances that they have. And proof of all of their securities that they are offering to the bank. Will significantly help the business owner get the loan.
It is so important says virtual accountant. What if business owners are missing different bits of information that should be in the company overview section. They might jeopardize the loan itself. And have the application itself rejected. Because they simply did not include the information they needed in order to qualify for the loan.
This is why business owners should be very thorough when filling out there company overview section. And while they might not need to spend a significant amount of time on it. They need to include very vital pieces of information.
One of the first things that business owners will need to put into their company overview section. Is the legal and operating name of their business. This is to avoid confusion. Because often, throughout the business plan. An entrepreneur uses the legal name or the operating name interchangeably.
They might not think about it. Or they might assume that since they are very familiar with their banker. That they do not need to specify it. However, it is typically not the banker that the entrepreneur is familiar with. That looks at the business plan in order to make the financing decision.
It is often an underwriter, who is not familiar with the business owner and is going to be looking at the business plan strictly on the business plan’s merits. In the information contained within. Therefore, but putting the legal name and operating name. Can minimize confusion. And make an underwriter understand it more thoroughly.
They also need to ensure that they are including the address of the business. And if they do not have a physical address yet. They can include the majority of shareholders’ addresses. Or whichever address was used for incorporating the business.
The company overview section is an important part of the business plan says virtual accountant. Because this is going to be what shows a bank. That the business actually qualifies for the loan in the first place.
And while many business owners are told that the executive summary is the most important section of the business plan. That is assuming that the business qualifies for the loan in the first place. The company overview section is going to be it helps an entrepreneur qualify.
Therefore, they need to know that they should put more information than simply the company’s name, address, and contact information. As well as the same information for each of the shareholders. Virtual accountant says business owners need to include what percentage of shares each of the shareholders own. Because the bank will not loan money to an organization to multiple shareholders. If they do not know that percentage.
Next, a business owner should include the name of their accountant, their practice, and contact information. The reason why, is because banks often see companies who work with an accountant. As having a lower risk. The reason why is because they have someone who is going to be holding them accountable for their business goals. In helping them understand their financial information. So that they can be more likely to succeed.
Also, entrepreneurs who have an accountant also have a realistic cash flow projection. As well as a financial plan and marketing plan. All of these things go into lowering the entrepreneur’s risk of failure. And can help qualify a business owner for the loan.
The lawyer of a business is the next important information that should be included in the company overview section. Because a bank will require several documents signed as registered. Such as personal guarantees, and security on property and equipment. By including the lawyer’s information in this section. Can help a bank understand that they are going to be able to get these things done quickly. If the award the loan to the entrepreneur.
If a business owner is offering securities for the loan. They should include all of the information for those securities. Even if it is something such as an investment. Virtual accountant says business owners should include the name of the advisor that holds the securities, the name of the investment company, and the contact information.
This will be so that the underwriter will be able to verify the business owner actually owns the property or investments that they are offering up as security. And will help them qualify for the loan much faster. If they fail to include this information into the company overview section.
The underwriter might think that it is to work to verify the information and deny the loan. Or, that they will simply take a long time chasing this information down and verifying it. Exponentially increasing the length of time it takes to approve this loan.
The more information that a business owner can include in this section of the business plan. The more likely they are going to be at qualifying for the loan. And then, the more likely to be awarded the loan. Based on the merits of their business plan itself.
