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It is important because the banks and underwriters are going to look at the section. In order to understand if the business actually qualifies for the loan that they are applying for. Or if they do not qualify for the loan.
Some banks might contact the business owner if they are missing important information in the section in order to get more information. Or, virtual accountant says it could cause the underwriter or the bank to outright reject the plan. And a business owner may not know why it was rejected.
Therefore, by understanding what the purpose of the overview section is. Can help ensure that a business owner is including all of the most pertinent information. To improve their chances of getting approval of the loan they need to grow their business.
In order to get approved for a loan. Virtual accountant says the banks need to know exactly who owns the business, and what the business is. Therefore, business owners need to ensure that they are including their complete name and contact information.
If they have other shareholders of the Corporation. They need to include that in the section as well. Especially including the percentage of ownership each of the shareholders owns in the corporation. By including all shareholder’s names, phone numbers, and addresses. As well as email addresses can help ensure that the bank has all the information they need. To understand who the owners of the business are.
They also need to ensure that there including all of the most important facts about the business. Including the name, address, email, and phone number. And if they have a website for the business.
Business owners may skip putting the businesses’ address in there. Because they are not in operation yet. However, if this is the case they should either use the address from the incorporation paperwork. Or the address of the principal business owner.
Once they have all of this factual information in the business plan. They can start including information that can help increase their chances of getting approval. And requirements they’re going to need in order to qualify for the loan.
For example, this includes proof of their general liability insurance. Often, the bank does not require this until they have approved the loan. And then as a requirement of finalizing that loan. Lead proof of insurance.
However, it can speed the process up. If the business is able to include the information about their general liability insurance upfront. This means including not just the company that they are insured with. There policy number, and contact information for the company as well.
By specifying as much information as they can in this company overview section. Can help ensure that business owners have what they need in order to qualify for their loan. And then help ensure that they can expedite getting their money. Because often when an entrepreneur is waiting on getting their money. In order to proceed with a lot of their business plans.
The company overview section is often overlooked by business owners says virtual accountant. Because their spending so much time creating the best executive summary that they can.
While the executive summary is extremely important. And can help a business owner get the approval that they need to get a loan.
It is also very important that a business owner has a great company overview section. So that they can prove to their bank. That they have the requirements needed to get the approval. Making it more likely that the underwriter is going to be able to see that executive summary that the business owner spent so much time on.
A business owner needs to understand that they should not just put the company information into the overview section. That it is also a great place to put all of the advisors that they are working with. To show the bank that they are more likely to be able to succeed. Because of all of the people that are helping them virtual accountant says.
Therefore, a great piece of information that business owners should put into the company overview section. Is the name and contact information of their accountant. Banks often see businesses that work accountants as lower risk. Making this a very important bit of information to include.
The reason why accountants are seen as lowering the risk of business owners. Is because when business owners work with accountants. The accountant will help them create a realistic business plan. And have accurate cash flow projections.
Also, if business owners work with accountants, they typically will have a deeper understanding of their business finances. And what they need in order to cover their costs, increase their revenue, and grow their business. Therefore, any entrepreneurs who are working with an accountant. Should include this information in the company overview section.
Also, the company overview section can include information that the bank is going to need in order to proceed with the application process. If they have approved the business owner for getting the loan. They will need to have certain information to proceed.
Things such as proof of their security that they are using as collateral for their loan. Can help ensure that not only can the underwriter verify that those investments exist. But include that information in their loan application. To expedite the process.
Therefore, virtual accountant recommends that business owners put all of the information about security into the company overview section. Even if those are simply investments. They should include the advisor’s name, company, and contact information.
Not only to make it easy for the underwriter to verify that those investments exist. But help ensure that they can complete the paperwork quickly when they do approve the loan and are finalizing the paperwork.
