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The company overview section is there to provide factual information about the business itself that is needed to get approved for a loan. The information that is included in this section. Can help the bank and the underwriter understand if the business qualifies for the loan in the first place.
This does not just mean it needs to have factual information about the business is, where they are located and the contact information. But it also needs to include information about the business owner, or if there is multiple business owners. As well as who is involved, who the advisors are of the business, and important business documentation.
Many business owners are not aware that this additional information is needed in the company overview. And often only include the companies name, and owners information.
Or, virtual accountant says the mistake that many business owners make. Is assuming that their banker already knows a lot of this information. So they do not want to reiterate it again. However, this could be a big mistake.
In fact, even if the business owner is applying for a loan at a bank that they have bank accounts, and a history with. They should not assume that the banker will remember this. But also, because the banker is often not going to be the one reviewing this information.
When it comes to business loans, virtual accountant says many banks will hand the plan off to an underwriter. Who is impartial, and will decide on whether or not to loan money to the business based on the merits of the business plan.
Therefore, business owners should not leave any information out. Even if they are on extremely good terms with their bank, or the banker themselves.
Some important information that often gets left out can be the contact information of the business itself. Such as the address, phone number, and email address. Many business owners believe this information out. Because their business is not yet in operation.
And the do not have an address that they are operating out of. Or a separate email address or phone number. Because they are not operating their business at this point. However, it is very important that they include something in this section. Because it is important for the loan application.
Therefore, a business owner should use the address on their incorporation paperwork. Or the address of the principal business owner. Same with the phone number, and email address.
It is also important to include the legal and operating name of the business. So that no matter which one the underwriter sees in various parts of the business plan. They will understand very clearly that the business owner means they use either term.
The company overview is an important section that not only can help business owners get approval of the loan that they have applied for says virtual accountant. But it can help them get approval of the loan once they qualify. As well as speed up the process once they have been approved by the bank or the underwriter.
It is important for business owner to include all of the people who are involved in helping the business succeed, including all of the advisors. Because the more people that are helping an entrepreneur succeed, the lower risk the will appear to the bank. And make it more likely that they will lead towards loaning the business the money that they have applied for.
Because of this, virtual accountant says it is very powerful for a business to include the name and contact information of the accountant that they use. Banks see this as a risk mitigation factor. Because when businesses use an accountant.
Not only do they typically have a more realistic cash flow projection. But their business plan is that well thought out, and include things such as a financial plan and marketing plan as well.
Another great business advisor they should include in the business plan includes the entrepreneur’s business lawyer. Also, the bank is going to require a number of paperwork being filled out and registered. Including personal guarantees, and security on properties and equipment. By including the lawyer’s contact information here, can help exploit the loan process if it is approved. So that they can get the money faster.
Also, banks typically require companies to get general liability insurance before the funding will go through. Therefore, if an entrepreneur already has general liability insurance for their business. They should include that in the company overview section. So that they can prove to the bank that they have completed one of the requirements that might have held the process up.
The same is true for life and disability insurance says virtual accountant. Because this is typically a requirement of getting alone. That a business owner will carry life and disability insurance for as long as they are paying back the loan to the bank.
Virtual accountant says this is because a bank wants to ensure that they have a way of getting paid back. If the principle of the business gets sick, injured, or passes away. Because typically, once an entrepreneur is no longer active in the business that they are growing. Especially when it is in the new stages of growth. It often stalls the business or has it fail.
Therefore, when business owners are able to include the fact that they already have their life and disability insurance. They can ensure that that is not things that hold up them getting the money that they have applied for.
Anything that a business owner can do to maximize their chances of getting alone approved, or get the money sooner. Should be included in the company overview section. By including as much information as possible upfront. Can help speed up the entire process. So that business owners can get on with growing their business.
