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The purpose of the company overview section. Is to give the financial institution all of the information about the company and shareholders. Including legal names, addresses and contact information. However, this is where many business owners stop including information. That can be a mistake.
The reason why this is a mistake. Is because the company overview section is the entrepreneurs opportunity to explain to the bank everyone who is involved in the business, not just the shareholders. But all of the business professionals that are going to help a business owner.
The first thing that they should concentrate on says virtual accountant is all of the information that the bank will require prior to approving the loan. Including the legal and operating name of the business. As well as all of the contact information for the business as well.
This can include address, phone number, and email address. As well as a website if there is one already. If a shareholder does not have a physical location of the business yet. They should include the address that was used for the incorporation of the business. This information is going to be verified by the underwriter. So it is extremely important to include.
The next information that a business owner should focus on says virtual accountant. Is the names and contact information for all shareholders of the Corporation. Not only do they need to include their name, address, phone number and email address.
But they also need to specify what percentage of the corporation each of the shareholders owns. So that the bank knows who the majority shareholder is. And they will verify all the information that is included in this section.
This is extremely important because the bank will typically never lend funds to a business if they do not know who the shareholders are, and can verify their information. And without knowing what percentage of the corporation they own.
If business owners miss this important information in the company overview section. They may put their business in jeopardy of being denied for the loan. Before the financial institution looks at any other information.
Once they have the basic information such as the company name and address, and shareholder names and contact information. The next thing that business owner can focus on is all of the other business professionals that they work with. To help them get their business to where it is today.
This includes their accountant if they have one. This is very important, because banks typically see businesses who are working with an accountant as a lower risk. Because they would typically have a realistic business plan and cash flow projections.
Accountants also can be significant in helping entrepreneurs know what they need to do to succeed. And have a better idea of what their financial numbers are. So by putting the accountant’s name, company and contact information. Can help them get the approval for their loan.
It is not only important for business owner to Phillips the company overview section. By filling it out as completely as possible. And including as much information as they can. Can help increase their chances of succeeding.
If business owners do not take into consideration the function of the company overview section says virtual accountant. They might not put the time and effort into this important section as they should.
This is the section of the business plan. That bankers and underwriters are going to use to verify that a business owner has everything that they need legally to get approval for a loan.
Therefore, simply by missing some important and key pieces of information. Can hurt an entrepreneur’s chance of getting loan approval. And can often be rejected, before the underwriter reads any other parts of the business plan.
While many business owners understand that the company name and address. As well as the shareholders name and contact information is important. They may not realize that there are many other things that they can include in the section. That can help increase their chances of getting the loan.
An example of this is if an entrepreneur is already working with a lawyer. Should put their lawyer’s names, practice, and contact information in this section.
The reason why says virtual accountant. Is because a lawyer is going to be needed to help the business owner complete important paperwork. Such as security on their property and equipment that must be registered. Or signing a personal guarantee.
These legal documents are often required before the loan can get finalized. Therefore, by including the name and contact information of their lawyer. They are helping speed up the process of getting their loan approved.
If an entrepreneur is using their investments as security. The underwriter of the financial institution is going to need to verify that information. So by including the company that they have the investments through. As well as their advisor’s name and contact information. Can help make it easy for the underwriter to verify.
It is also a requirement that the business owners will have general liability insurance in their business. And banks typically want to see this in place before they will approve the loan. Therefore, virtual accountant says if they put this information into the company overview section as well. The underwriter does not have to stop the process to ask the entrepreneur if they have this information.
And finally, having life and disability is often a requirement for each of the shareholders in order to get a loan. This is in order to ensure that the bank can get their money back. If something happens to a business owner or any of the shareholders.
Banks often ask you to the shareholders to sign a document saying that they will continue to have life and disability insurance as long as they are paying back the loan. So to put this information directly into the company overview section. Can help the underwriter understand that business owner has already completed one of the necessary steps.
A well-written company overview section is going to help an entrepreneur maximize their chances of getting their loan approved. And it can help speed up the process as well. So that they can get their loan sooner. And be closer to opening the doors of their business.
