Business owner financing based on current P&L statements for optimal qualification
Qualify based on recent business profitability rather than older tax returns that may not reflect current success.
More flexibility than full-doc loans while providing faster approval than traditional stated income programs.
Streamlined underwriting process focusing on business cash flow and profitability trends rather than complex tax analysis.
Profit & Loss (P&L) loans are designed for self-employed borrowers and business owners who can demonstrate strong income through current profit and loss statements rather than traditional tax returns. These loans are ideal for entrepreneurs whose businesses show excellent cash flow and profitability but may not reflect their true earning capacity on tax returns due to business write-offs, depreciation, or recent business growth that hasn't yet appeared on filed taxes.
These loans are particularly valuable for seasonal businesses with strong profitability during peak periods, rapidly growing companies whose recent success isn't reflected in older tax returns, borrowers who've recently become self-employed and don't have two years of tax returns, and established business owners who maximize tax deductions and show lower taxable income than actual cash flow.
To qualify, you'll typically need 12-24 months of profit and loss statements prepared by a CPA or tax professional, business bank statements showing consistent deposits that support the P&L figures, a business license and registration documents, and a strong personal credit score (usually 680+). Some lenders may also require a CPA letter verifying the accuracy of the P&L statements.
P&L loans offer more flexibility than traditional stated income programs while providing faster approval than full documentation loans. They bridge the gap between full-doc and no-doc lending, providing reasonable documentation requirements while still verifying business performance and cash flow.
Interest rates are typically 0.25-0.75% higher than conventional loans, reflecting the alternative documentation but remaining competitive with other non-QM loan products. The rate premium is often offset by the ability to qualify based on actual business performance rather than tax return income.
Down payment requirements range from 10-25% depending on the loan amount, property type, and borrower profile. Primary residences may qualify with 10-15% down for strong borrowers, while investment properties typically require 20-25% down. Higher down payments often result in better rates and terms.
These loans are available for primary residences, second homes, and investment properties, with loan amounts ranging from conforming limits up to jumbo loan amounts. Some lenders specialize in high-balance P&L loans for successful business owners and entrepreneurs.
The underwriting process focuses on business profitability and cash flow consistency rather than tax return income. Lenders analyze P&L trends, seasonal variations, business stability, and overall financial strength to make lending decisions.
Dani specializes in P&L loan programs and works with multiple lenders to find the most competitive terms for self-employed borrowers. He helps organize your business documentation, presents your income story effectively, and ensures a smooth approval process with minimal documentation hassles while maximizing your borrowing power based on actual business performance.
Analyze your recent profit and loss statements to determine qualifying income potential.
Gather CPA-prepared P&L statements and supporting business documentation.
Review business trends, cash flow patterns, and overall financial stability.
Connect with specialized lenders experienced with P&L loan programs.
Complete streamlined underwriting process based on business performance.
Let Dani help you secure financing using your current P&L statements to showcase your business success and cash flow.