What Is Included In A Great Company Overview | Virtual Accountant
Many entrepreneurs may not understand what the purpose of the company overview section is of their business plan says virtual accountant. And because of that, may not be putting as much information into this section as is beneficial.
It is very important that an entrepreneur understands that this section is often where an underwriter looks. In order to understand if they qualify for the loan that they are applying for or not.
Business owners should ensure that they are putting not just the company name, and their own name and contact information. But they need to include all of the legal information surrounding the company and the shareholders says virtual accountant. So that they can help verify that information.
The first thing that a business owner should include is the legal name and operating name of their business in order to avoid confusion. A business owner might be using those two names interchangeably throughout their business plan. So by including both names here. Virtual accountant says they can help minimize any potential confusion that their underwriter has.
The business owner should also ensure that they are including important contact information for the business. Including the address, phone number, email, and website if they have one. If an entrepreneur does not have an address of their business because they are not yet open. They can put whichever address they used on their incorporation paperwork.
A business owner should ensure that when they are including the information about the business owner. If there is more than one shareholder. They need to include all of the contact information for each of the shareholders. But also what percentage of the corporation each of them owns.
A bank will not be lending funds to a business. Without knowing exactly which shareholders loan what percentage of the corporation. So by including this information into the company overview section. Can help ensure the bank has the information they need to approve the loan.
Aside from the information about the company and the shareholders. Another piece of Horton information to put into the overview section. Is if an entrepreneur is working with an accountant. They can include the accountant’s name, practice, and contact information.
The reason why they should include this information. Is because many banks see working with an accountant as a way to lower the business’s risk. Because they will typically have a realistic business plan and accurate cash flow projections. As well as working with a business professional that can help them succeed in business.
If an entrepreneur has a lawyer, the lawyer’s information should be included as well. Because they will need to have several legal documents filled out and registered. Such as security on property and equipment. And personal guarantees. So by putting their lawyer’s information in the company overview section. Can help the bank expedite this part of the loan approval.
If business owners look at the company overview section as an important place to include information about their business. That can help them qualify for the loan. That can help ensure that they put the most important information into this section. That they can be more likely to get the loan approval that they need to grow their business.
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Business owners need to understand that the company overview section is very important says virtual accountant. And more than just a place to specify the name and address of the business. In fact, it can help not only get the approval they need for loans. But can also help expedite the process as well.
Many entrepreneurs are not aware of how much time it takes to approve alone. This is often because there is only a few underwriters for businesses at each bank. And they have to verify a lot of information in order to proceed with the loan.
Therefore, if business owners can help the underwriter. By providing as much information as possible. They can speed up the verification process. And be much more likely to get the loan sooner, then if they did not include this information.
One important piece of information that not nor should include is information about their security. Especially if they are using investment as security says virtual accountant. They need to include not just information about the investment. But the name of the advisor, the advisor’s company, and their contact information.
This way, the banker or underwriter will be able to verify these investments. And be able to move on to the next section of the business plan.
The next information that business owners can include in the company overview section of their business plan. Is the general liability insurance they have for the business. This is going to be a requirement that the bank has. That the business will have this insurance in place.
So if an entrepreneur is able to provide proof of that insurance had of time. It is going to help the business owner not just to qualify for the loan faster. But help ensure that if they are approved for the loan. That they will have fewer requirements that they have to go through. In order to get the money.
In addition to general liability insurance for the business. Virtual accountant says business owners will need to have life and disability as well. This is how banks are going to be able to be guaranteed that they get their money back. If the shareholders of the Corporation get sick, get injured, or dies.
They often also require the business owner to specify that they will continue to have coverage as long as they are paying back the loan of the business. Therefore, including their life and disability insurance can help them significantly. By showing the bank that they already have that requirement complete as well.
When business owners understand all of the information that is helpful to put into the company overview section. They will be able to ensure that that information is included. So that they can be more likely to not only get the approval that they need. But get the approval much sooner then if they had not included that information in the first place.