Question 1

Does my CPA need special licensing for P&L loan documentation?

Accepted Answer

Your CPA must hold an active license and cannot be a family member. Most California-licensed CPAs qualify without additional certifications.

Question 2

Can I use P&L statements if my business is less than two years old?

Accepted Answer

Some lenders accept 12 months with strong reserves. Newer businesses typically need larger down payments and face higher rates.

Question 3

How do lenders handle seasonal farming income on P&L statements?

Accepted Answer

They average monthly profit across the full statement period. Large harvest deposits in certain months get smoothed into consistent income.

Question 4

What if my P&L shows profit but my tax returns show losses?

Accepted Answer

That's exactly why P&L loans exist. Legitimate business deductions reduce tax liability but don't reflect actual cash flow to you.

Question 5

Do I need business bank statements in addition to the P&L?

Accepted Answer

Yes, most lenders require 12-24 months to verify the income patterns shown on your P&L statements.

Question 6

Can I refinance with a P&L loan or only purchase?

Accepted Answer

Both purchase and refinance work. Cash-out refinancing faces tighter restrictions and requires more equity than rate-term refinancing.

P&L Statement Loans in Parlier: Financing Built for Self-Employed Business Owners