Question 1

Can I use my business P&L if I'm only 6 months into operations?

Accepted Answer

No, all lenders require 12-24 months of business history. Consider bank statement loans if you have deposit history but minimal operating time.

Question 2

Does my CPA need special certification to prepare P&L statements?

Accepted Answer

Your CPA needs an active license and must sign the statements. Enrolled agents and licensed tax preparers also qualify as acceptable preparers.

Question 3

What if my P&L shows a loss in one quarter?

Accepted Answer

Lenders average income across all periods reviewed. One weak quarter won't kill your deal if overall trend shows profitability and sufficient income.

Question 4

Can I add back depreciation to increase my qualifying income?

Accepted Answer

Yes, most lenders add back depreciation, amortization, and non-recurring expenses. Your underwriter determines which add-backs apply to your specific P&L.

Question 5

How much does P&L loan pricing differ from conventional rates?

Accepted Answer

Expect 1-2.5% higher rates than conventional mortgages. The spread narrows with stronger credit scores and larger down payments above 25%.

Question 6

Will lenders verify the income shown on my P&L statements?

Accepted Answer

Yes, underwriters verify business registration, bank accounts, and may request tax transcripts. They're confirming business existence, not reported tax income.

Profit & Loss Statement Loans in Commerce: Income Verification for Business Owners