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E-Myth – “Why most small businesses don’t work & what to do about it”

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Virtual Accountant | We Will Specify Which Product is Most Important

 

It’s important that entrepreneurs are being extremely specific when they are applying for financing according to Virtual accountant. Because if they are not specific. They might end up with financing. But not the right kind. That will affect what they can spend that money on.

Therefore, the more specific they can learn to be. The more information that they will end up giving their financial institution. And the more likely they’re going to be at getting approved for their loan.

Business owners needs to understand that being specific means specifying more than just the lump sum that they need. But also specifying exactly what’s there going to be purchasing with that money. How much each thing that they are purchasing will cost. And even what Financial product is going to be needed for that loan.

The reason why they need to be so specific. Is because each thing that they need for their business. Might fall under different interest and amortization. Or they might fall under different Financial products. Such as a mortgage, or a Term Loan.

And if an entrepreneur is approved for a Term Loan. They will not be able to buy a building with that. And if they get a mortgage. There’s no way that they can use that money for a vehicle.

Therefore, virtual accountant says by being extremely specific. Can help give the bank the information they need. To approve the loan for the entrepreneur.

Not only should they be specifying this in their business plan. But also included in their executive summary. Because the executive summary is often the only part of the business plan that a bank will even read. In order to make their decision. On whether or not to Grant a loan to a business.

Business owners needs to ensure that they are writing their executive summary extremely well. Not just specifying all of their financing needs in the executive summary. But also ensuring that their growth plans, marketing plan, are included in this executive summary.

So that the bank will be able to see that’s the entrepreneur has a very well-thought-out business plan. And they will be more likely to succeed based on the information in their executive summary.

Therefore, business owners needs to ensure that they’re not just putting their financial requirements into the executive summary. That it represents all of the most important parts of their business plan. So that they can be more likely to be approved for a loan.

Business owners also should even specify the type of interest and amortization that they would like. While it’s less likely that they’re going to get approved for that says virtual accountant. By making the request, they are at least putting it out to the bank, to grant their wishes. And it’s not going to take them a lot of additional time to include.

If the bank says yes, then it will be well worth the few minutes of times has virtual accountant. and if the bank says no, Then it was worth the effort to have tried. Because they wouldn’t have got it even if they didn’t ask.

Virtual Accountant | Specifying Financial Product is Important

It’s extremely important that an entrepreneur can learn to be extremely specific in their financing request says virtual accountant. Their ability to carry out their business plan depends on getting all of the financing that they ask for.

Therefore, learning what they can do to be more likely to get that financing. Will be the most beneficial for the entrepreneur as well as their business. He needs to ensure that they have a business plan and that it is very well done. With a complete executive summary

Thanks will typically only look at the executive summary. So the more well-written it is. And the more specific information about the financing that is in it. The more likely they are going to approve the financing for a business.

Entrepreneurs needs to not only specify the lump sum of money that they are hoping to borrow. But they are also going to need to specify what to financial products are associated with each of the needs that they have.

When they do this says virtual accountant. They will be more likely to get the financing that they need. In the form that is most beneficial to them. If they end up getting a lump sum financing. But it is only for one type of financial product. That’s going to limit when an entrepreneur can do with that money.

Therefore, business owners needs to understand that there are four different types of financial products. Each with a specific usage attached to them. The first one is a credit card. And entrepreneurs should be applying for their credit card at the same time as the rest of their financing does virtual accountant

The reason why, is because entrepreneurs may not be approved for a credit card if they apply later. Because they will already have debt servicing in their name. Therefore, applying for their credit card early on. Can increase their chances of getting one.

The next type of products that a business owner may be able to apply for as a line of credit. Banks typically don’t issue lines of credit says virtual accountant. Primarily because they only wants to loan money on hard assets. But if an entrepreneur is lucky enough to get a line of credit it is the most financially advantageous.

Not only will they have access to money, and won’t have to specify what they are using it for ahead of time. Business owners also need to take into consideration. They typically only have to make interest payments. Instead of paying down the principal for the first few years.

The third type of products as virtual accountant is a mortgage. And this is specifically for buildings, real estate, or Construction. Bye specifying in their executive summary exactly what they are purchasing for a mortgage. And how much each item will cost. Can help ensure that a bank is comfortable loaning that money. Knowing that a business owner is not asking for half a million dollars. Hoping to use some of that money as working capital.

Finally, there are term Loans. Which are specifically for assets. Again, virtual accountant let’s business owners know that they need to specify every single asset that they are going to purchase. As well as how much it’s going to cost. This is mostly because each asset might have its own interest and amortization. So the more specific and entrepreneur can be. The more likely they are going to get a proposal that works for them.