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Tips On Writing An Effective Company Overview | Virtual Accountant

Business owners should understand that there is no section that should be considered more important than another in a business plan says the virtual accountant. And while many business owners spend significant amounts of time on the executive summary.

If they do not spend time on the company overview. this might keep the bank’s underwriter from looking at the executive summary. And have the business plan rejected, for the even really look at the merits of it.

The company overview section should be considered not just a place for an entrepreneur to write the company’s name and contact information. But an important section of the business plan says the virtual accountant. That helps an entrepreneur demonstrate to the bank. That they have the requirements necessary. In order to be awarded the loan in the first place.

Therefore, there should be more information than the company’s name, address, and phone number. And the entrepreneur’s name, address, and phone number. They should be considered legal documents. Specifying all of the legalities of the business. And will be fact-checked by the underwriter themselves.

First, the business owner needs to ensure that they have both the legal name and the operating name of the business to avoid confusion. And that they have an actual address of the business. Even if they do not have a physical location yet. Virtual accountant says this means an entrepreneur can put in the address that they used for incorporating a business. Or the majority shareholders address if they are not yet incorporated.

If they have more than one shareholder of the corporation. They also need to include the percentage of shares that each shareholder owns. Because the bank is simply not going to loan money to any organization. That they do not have a percentage of the shares outlined in a document.

However, this is not the only information that needs to be included in the company overview section. If an entrepreneur is working with an accountant. They should include that accountants’ information in this section as well.

The reason why says virtual accountant. Is because banks typically see working with an accountant as a risk mitigation factor. This is because businesses that have accountants at this stage. Typically have realistic cash flow projections. They also typically will have a well thought out financial plan and marketing plan within their business plan.

And that they not only have an accountant, but this accountant will help them accomplish their goals and know what revenue they need to succeed moving forward. And that by having a business professional that they work with to help them achieve their goals. Can make the business a lot less risky to loan money to.

Therefore, business owners should put their accountant’s name, their firm, their address, and contact information. So that this can be verified. And help an entrepreneur qualify for the loan. So that the underwriter can move on to the executive summary. And start looking at the merits of the business plan itself.

Tips On Writing A Good Piece Of Work?

A company overview section is very important says virtual accountant. Because it shows the bank that the entrepreneur has all of the requirements that are going to be necessary to approve the loan in the first place.

For example, an entrepreneur is going to need to have several documents not only signed but registered legally. Therefore, including the company’s lawyers’ information in the company overview section is very important. An entrepreneur will need to sign and register personal guarantees, securities on their property, and equipment. And they will need to use their own lawyer for this information.

So, by including the lawyer’s name, practice, and contact information. Can help speed up the loan application process. And is very important to include in the company overview.

The next thing that business owners should understand is important to put in the company overview section. All of the information about everything that they are using as security for the loan. They might use their house, assets, or even investments as security. So they should include all of the information about these securities.

The legal land title for their house, the address of where it is, and their mortgage information. If they are using investments, they should include the advisor’s name, company, and contact information says virtual accountant.

By including all of the information for their securities. Can help the underwriter verify that information factually. So that they can move faster onto looking at the executive summary of the business plan. If the underwriter is not able to verify the securities information. They may not proceed with the loan application. Meaning they will not even have a look at the executive summary.

It is also going to be very important for the entrepreneur to include all of their insurance information as well. They are going to require general liability insurance in place in order to get approved for the funding.

While some banks will approve the loan, on the condition that they get this insurance. Virtual accountant says that if entrepreneurs simply have it in place first, and include that information in the company overview section. Can eliminate this step. And make it a much more expedited process.

The same goes for the life and disability insurance that a bank will require the shareholders to have. In order to get their loan. This is typically a requirement because that is going to be what helps a bank be guaranteed they will get their money back. If an entrepreneur gets sick or dies.

Not only that, but business owners are typically asked to sign a guarantee that they are going to continue having this coverage as long as they are paying back the loan. So if an entrepreneur already has life and disability insurance. Input that information in the company overview section. It can eliminate the need for the bank to hold up awarding the loan. Because they are waiting for an entrepreneur to get their insurance in order.

By understanding all of the important information that can be included in a company overview section. Help an entrepreneur include some vital information. That can help them qualify for the loan in the first place.