Question 1

Does my CPA have to prepare the P&L from scratch?

Accepted Answer

Yes. Lenders require a CPA-prepared and signed statement. A bookkeeper-prepared or self-generated P&L won't be accepted.

Question 2

Can I use one year of P&L instead of two?

Accepted Answer

Some lenders accept 12 months. Others require 24. A shorter history usually means a higher rate or stricter terms.

Question 3

Will my business write-offs hurt my qualifying income?

Accepted Answer

They can. The P&L shows net income after expenses. Large deductions reduce the income lenders use to qualify you.

Question 4

How does this loan differ from a bank statement loan?

Accepted Answer

Bank statement loans calculate income from your deposits. P&L loans use your CPA's summary. The better option depends on your specific financials.

Question 5

What credit score do I need for a P&L loan in San Leandro?

Accepted Answer

Most P&L lenders want a 640 minimum. A higher score improves your rate. Rates vary by borrower profile and market conditions.

Question 6

Is a P&L loan harder to get than a bank statement loan?

Accepted Answer

Not necessarily harder — just different. You need a strong CPA relationship. The underwriting focuses heavily on business health and consistency.

P&L Statement Loans for San Leandro's Self-Employed