Virtual Accountant | What Information Is In The Company Overview
Many business owners understand the importance of the business plan says virtual accountant. Not only in helping them understand what objectives to achieve in their business. And what goals they are reaching for. The business plan can also help them achieve those goals by outlining the strategic priorities they need to work on.
Also, business owners understand that a business plan can help them get the financing they need. Whether it is to open their business, purchase assets, or even by a building that they need to help their business grow. And when it comes to getting financing. Many business owners understand the importance of the executive summary. Because this will help them secure the financing if it is written well according to virtual accountant.
However, this is not the only thing they need to focus on in order to get financing. Virtual accountant recommends that business owners also spend time working on their company overview section. Because contrary to what many business owners believe. This is more than just the name and address of the company, and the name and address of the shareholders.
In fact, the company overview section is so important. What if business owners do not have important information in this section. The bank the not even look at the executive summary. Because they do not have enough information to approve the loan.
Therefore, business owners need to understand what should go into the company overview section. So that they do not miss putting vital information. That the banks require to process their loan.
Ultimately, business owners should consider that the company overview section is the part of the business plan where they specify in detail what the company is, who the owners and shareholders are, and all other business professionals they worked with and are continuing to work with. To help the bank understand key pieces of information.
The first thing those business owners should do is understanding what company information is needed in this section. It is recommended that business owners start with the legal as well as the operating name of their business plan. In order to avoid confusion.
Some business owners use both terms interchangeably. So by outlining it in the overview section. Can help avoid confusion. Especially as the underwriters are often not familiar with the business owner, or their business. Even if it is the business owner’s own bank.
The next thing that the business owner needs to put into the company overview section of their business plan. Is all of the company information. Including address, phone number, email address, and website if the business has one.
If there is no physical address for the business. Entrepreneurs can put in the address that they used to legally incorporate the business. And if they are not yet incorporated. They can use their own address. Or the address of the majority shareholder.
If business owners make the mistake of thinking that it is just the operating name and phone number and email address. They may miss important information, and have the bank reject the loan on the basis of not enough information.
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The company overview section is an extremely important section according to virtual accountant. That is second to the executive summary. While the executive summary summarizes the most important aspects of the business plan.
The company overview section gives the bank the important information they need. In order to actually award the loan. And if business owners are missing information in this section. The loan application could simply be denied based on a lack of information.
After putting in the business is the legal name as well as the operating name. And address, phone number, email address, and website information. Then the entrepreneur can focus on other basic information such as the owner, or shareholders.
Not only does the entrepreneur need to put in the names of all the shareholders. As well as their address, phone number, and email address. But they also need to include what percentage of shares each shareholder owns.
Because the bank is not going to loan any funds to a business without knowing exactly which shareholders own what percentage of the business. By missing this information says virtual accountant. Business owners put the entire loan application in jeopardy.
The next bits of information that should go into the company overview section. Our lawyers are helping the entrepreneur. Virtual accountant says this is incredibly important to put in here. Because many legal documents are going to need to be filled out in order to complete the application. And an entrepreneur will not be able to use the bank’s lawyers.
By putting the lawyer’s name, practice, and all of their pertinent contact information. The bank can send all of the information they need signed off to the lawyer. And it speeds up the process. This includes security on property and equipment that must be registered. As well as personal guarantees.
The next thing that business owners should think about is if they are using investments as a security for the loan. They should include that information in the company overview section. The underwriter’s job is to verify all of the information that has been given to the bank as factual.
And if the business owner includes their investment information says virtual accountant. Such as the company that they are investing with, the advisors name, and all pertinent contact information. It will make it very easy for the underwriter to verify the information. And speed up the loan application process.
The business owner also requires general liability insurance for the business. And this is a requirement of the funding. So if the bank does approve the business. The entrepreneur will then need to get insurance. However, they can speed things up by getting their general liability insurance. And then include that information in the company overview section. So that they can expedite the process significantly.
By understanding all of the information that can go in the company overview section. Makes it more likely that business owners will put that information in. In either be more likely to get the loan approval. Or at least speed up the process. So that they can get on with starting their business.