Question 1

Do I need two years of P&L statements or will one year work?

Accepted Answer

Most lenders accept 12 months, but some require 24 months for new businesses or borrowers with credit below 680. Longer history improves approval odds and rates.

Question 2

Can I use a P&L I prepared myself instead of hiring a CPA?

Accepted Answer

No. All lenders require CPA preparation and signature for P&L statement loans. Self-prepared financials only work with bank statement programs.

Question 3

What if my business expenses are high and my net profit looks low?

Accepted Answer

You may qualify better with a bank statement loan that uses gross deposits rather than net profit. We can model both to see which maximizes your buying power.

Question 4

How do lenders verify the P&L my CPA prepares?

Accepted Answer

They confirm the CPA's license and may request business bank statements to cross-check reported income. Some lenders also require a business tax return.

Question 5

Will my seasonal agricultural income disqualify me from P&L loans?

Accepted Answer

Not if your CPA can show consistent annual profit across multiple years. Lenders understand seasonal patterns in farming and average income over the full period.

P&L Statement Loans in Kerman: Income Proof for Self-Employed Borrowers