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When in fact, the company overview section is designed for including all of the information that the bank or underwriter is going to need. In order to understand if they even qualify for the loan. Before looking at the other aspects of the business plan. In order to decide if they want to loan money to this organization or not.
If an entrepreneur does not have all of the most pertinent information in this. They might delay the loan. Or simply outright have it rejected.
Even when it comes to the company’s information. Virtual accountant says many entrepreneurs are leaving certain information out. Which is hurting their chances of getting the loan approved. Therefore, it is extremely important that entrepreneurs know what information should be included here.
The first thing that business owners need to know is that when it comes to the company information. They should start with the name. The legal and the operating name to be exact. Because people reading the business plan. Are not familiar with the business. And it can lead to confusion. If an entrepreneur uses the legal name and operating name interchangeably.
Next, business owners should be including contact information about the business. Many entrepreneurs leave this information blank. Because they simply do not have an address, or even a phone number, email address our website. So they do not see the point in putting this information into the company overview section.
However, it is necessary for the bank to put something down In the loan application. And so an entrepreneur should put some information down here. If they do not have an address yet, they can use the address that they used for the incorporation documentation.
If they are not yet incorporated, virtual accountant says business owners can put down the address for the principal business owner. Same with the phone number, and email address. By including all of this most basic information. The business owners can at least ensure that they are not leaving important pieces of information completely blank. Which may jeopardize their chances of getting approval for a loan.
The next thing that a business owner should include in the company overview section of their business plan. All of the advisors that they work with. And all of the securities and insurances that they have. That the business is going to find it very useful in minimizing the bank’s risk when it comes to loaning money to the business.
As soon as entrepreneurs understand what information should be put into the company overview section. They can immediately increase their chances of getting the approval that they need. And helping them get the money they need to start their business.
Business owners need to understand that the company overview section is very important says virtual accountant. And if they do not understand how important it is, they may be hurting their chances of getting the loan approval that they need.
Therefore, business owners can help their chances of getting the loan. By knowing what information should be included here. So that the underwriter will be more likely to grant them the loan.
After they precluded their company and business owner information. Virtual accountant recommends that entrepreneurs include all of the names and contact information for the advisors that they use. In their business, and preparation of their business plan.
For example, the bank will want to know if an entrepreneur is working with an accountant. The reason why is because banks see this as a risk mitigation factor. For a number of reasons.
If business owners are already working with an accountant. That accountant probably helps them create a realistic business plan. In that business plan most likely has accurate cash flow projections, a well-thought-out marketing plan. As well as a financial plan that an entrepreneur can use to help them understand the finances that they need to stay in business.
Therefore, this is great information to include in the company overview section. That can increase their chances of an underwriter agreeing to loan money to the organization.
The same is true for an entrepreneur that already is working with the lawyer. In addition to that, many legal documents are going to need to be filled out, signed, and registered. And an entrepreneur’s not gonna be able to use the bank’s lawyers to get that done.
By including the lawyer’s information in the company overview section. If the bank approves the loan. Then they will be able to send the information directly up to the entrepreneur’s lawyer. To complete the important people’s work. That they need to proceed with the application.
More important information in the company overview section is if an entrepreneur is using their investments as security. Including this information in the company, overview section is important. Primarily because it is going to be the underwriter’s duty to verify the information that is given as accurate.
So by giving that information in the company overview section. Can make it easier for the underwriter to do their job. Taking it easier to verify the information more easily. And therefore faster as well.
Even including all of the business’s insurance information. Can help ensure that the underwriter can verify that the business does have insurance. And the sooner the underwriter can verify the information that the entrepreneur gave is accurate.
The sooner the underwriter is going to be able to look at the business plan. In order to make a decision on whether they would like to loan money to that business or not.
Therefore, virtual accountant says it is very important for an entrepreneur to understand why the company overview section is so important. Not only so that they can all if I for the loan. But so that they can make the process simpler, easier, and therefore faster for all involved.
