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Virtual Accountant | What Information To Incorporate In A Company Overview


The company overview section is a smaller section to be included directly after the executive summary says virtual accountant. And many entrepreneurs underestimate its importance. In fact, they spend a significant amount of time on the executive summary. Because they believe this information is all a bank needs to award the loan.

And while banks typically are not going to look at the entire forty-page document of a business plan. And they typically do make their decision on whether to award the loan based on the executive summary. The company overview section is important. Because the bank will look at this. To decide if the company has enough information. To even proceed with the loan application.

This important section needs to include information about who the company is, the contact information. Who the shareholders are, and their contact information. As well as other professionals that they work with. And other vital information.

By knowing exactly what information should be included in the company overview section. Can help entrepreneurs put the most important information here. And be more likely to have the underwriter consider their loan. Without rejecting it first.

While many business owners understand that they need to put the company name, and contact information says virtual accountant. They often miss things like the address, because they do not have a physical address yet. Or they only put the legal name of the business in the document.

The first thing that the business owner should start with. Is putting the legal name as well as the operating name into the company overview section. Because often, a business owner uses those names interchangeably. And by putting both in the overview section. This means that the underwriter will be able to understand very clearly what an entrepreneur means if they use either term.

The business owner also needs to ensure that they include all of the contact information of the company. And that the underwriter is going to verify that information. So it needs to be completely accurate. Even if a business owner does not have a physical address for their business yet. They needed to include an address for the incorporation. And they can use that address on the overview section.

The next thing that the business owner should put is not just the business owner’s name and contact information. But what their address is as well. And what percentage of the corporation the shareholder owns. If there are multiple shareholders says virtual accountant. All of their names, address, and contact information needs to be included. But also what percentage of the corporation each shareholder owns.

The bank will not lend funds to an organization, without knowing exactly which shareholders own what percentage of the company. Making this one of the most important pieces of information within the company overview section.

By knowing all of the most important information to include here. Can help entrepreneurs simply qualify for the loan. So that the underwriter will read the executive summary, and award the loan based on the merits within the business plan.

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While many business owners are told that the executive summary is one of the most important sections of their business plan says virtual accountant. They also need to understand how important the company overview section is as well. So that they can spend enough time on it. To help them qualify for the loan.

While the executive summary includes all of the most important information about the business plan itself. The company overview section is where a business owner tells the banks and the underwriters. The most important information about the business and the owners.

Without filling out important information in this section. Can have an underwriter not qualify the business for a loan in the first place. Making all of the hard work an entrepreneur did in the executive summary. As well as the rest of the business plan and important. Because it is not even getting read.

After a business owner has put in the company’s name, address, and contact information. And all of the names, addresses, and contact information for each of the shareholders. The business owner still needs more information to include.

For example, a business owner is going to need to have general liability insurance as a condition of funding. If they include the general liability insurance that they already have in this section. Not only does it make it very easy for the underwriter to verify this information. But they can speed up the application process because this condition has already been fulfilled.

Virtual accountant says another piece of information that an entrepreneur should include is the life and disability insurance that they have on themselves. This is often a covenant of getting a business loan. Because this is going to be what guarantees the bank can get the money that they loaned back. In case the business owner is seriously injured or dies.

If an entrepreneur is even using securities to secure the loan. They should include that information here. And if using investments as security. It can include the investment company, the advisor’s name, and contact information. To make it easy for the banker or the underwriter to verify the information.

And finally, a business owner should include their company’s lawyer information. In order to proceed with the loan, an entrepreneur must have a lawyer prepare their personal guarantees, the security on property and equipment that needs to be registered. And having the lawyer’s information in the company overview section. Can help the bank get those documents quickly.

By including all of this information in the company overview section. Can show bakes underwriter. That the entrepreneur has all the pertinent information they need. In order to award the loan. So that they can verify this information quickly. And get on with looking at the merits of the business plan itself. In order to make their decision on whether they are going to loan money to the organization or not says the virtual accountant.