Virtual Accountant | Write A Great Company Overview
Many entrepreneurs are not aware that a company overview section is as important as it is says virtual accountant. That the underwriters of a bank are going to review it. In order to verify if the business qualifies for the loan in the first place.
And that if vital pieces of information are left out of this section. That often, the loan application itself will be rejected. Without giving a business owner any indication of why.
That is why business owners should be aware of all of the most important information to include in the company overview section. That they can be more likely to show bank underwriters that they qualify for the loan. So that the underwriter can move on to the executive summary.
Business owners should look at the company overview section as the information section of the loan application. And that if they leave any information blank. That puts their application in jeopardy. For example, business owners need to include both the legal name as well as the operating name of the company. In order to avoid the underwriter being confused.
Even if an entrepreneur is using a bank that they are very familiar with. And where the bank knows them very well. Virtual accountant says entrepreneurs need to understand that an underwriter is typically an impartial person. This is done by design so that the underwriter can provide a completely objective opinion to the bank. On whether they should loan money to the business or not.
Because of that, they should not assume that the bank is going to know any information. Because of how well they might know the business owner themselves.
Something else that business owners should include in the company overview section is all of the contact information for their business. This might be difficult for new entrepreneurs. Especially if they have not yet opened the doors to their business. Or they need this loan to be approved. So that they can have a location for example.
However, business owners should understand that they can put their own address into the company information. As long as they are the principal owner of the corporation. Or whichever address they used for the incorporation documents for their business.
And even if the phone number, and email address is the same as the business owners. Including the information. Can make it very clear to the underwriter what information should be put on that section of the application.
It is also important that not nor fills out that same information for themselves. Putting their name, address, phone number, and email address. If they own less than a hundred percent of their shares. They should include who else owns shares in the corporation. And fill out all of their contact information. As well as what shares they own as well.
This is incredibly important says virtual accountant. Because a bank will need to know that percentage of shares before they will approve funding requests.
Write An Overview For The Virtual Accountant To Read
Often, business owners get very involved in writing their executive summary says virtual accountant. That they do not consider all of the most important information to include in the company overview section.
And while the executive summary is going to be an important synopsis of all of the most important parts of the business plan. The company overview section should show all of the most important bits of information about the business. That will help them qualify for the loan in the first place.
If entrepreneurs miss pertinent information in the company overview section. They might not even end up qualifying for the loan. So that the underwriter will never actually read the executive summary. This is why it is very important for entrepreneurs to include as much information as they can hear.
After an entrepreneur has put in the contact information for the company itself and all shareholders. The next thing that they should include, is all of the advisors that they use that are going to help them succeed.
A great example of this is if an entrepreneur uses a virtual accountant. Should include that information in the company overview section. Banks typically consider entrepreneurs that consult with an accountant as a lower risk. Because of how beneficial accountants are at helping entrepreneurs succeed.
This typically means that they have accurate cash flow projections, a realistic business plan, and someone to help them understand the numbers. So that they can hit all of their financial goals.
Therefore, a business owner should include the name of their accountant, the accountants firm, and all of their contact information. In the company overview section. So that the underwriter can see that an entrepreneur works with advisors that are going to make them more likely to increase the revenue, succeed, and eventually pay back the loan that they owe.
Next, a business owner can include information that they are going to needs to have anyway. Before the bank will release the funds to them. If they are approved for funding. For example, the bank will need to verify that an entrepreneur has general liability insurance in their business. Before releasing the funds to them.
So if an entrepreneur already has general liability insurance set up. They should ensure the proof of that is located in the company overview section. This way, they do not have to hear back from the bank, get their insurance set up, get that information to the bank. They can simply move on to the next step.
If an entrepreneur has life and disability insurance for themselves. This is another bit of information that they should include in the company overview section says virtual accountant. The reason why is because this is another requirement of the bank. To ensure that they can get their money back if something happens to the business owner.
By including this information, a business owner will be able to help move the loan application a long period and be more likely to get the money a bit sooner than they would if they did not include this information in their company overview.