Question 1

Do I need two years of self-employment for a P&L loan in Gonzales?

Accepted Answer

Most lenders require 12 to 24 months. Some accept less with strong compensating factors like high credit scores or larger down payments. Business licenses and client contracts help prove business stability.

Question 2

Can my bookkeeper prepare the P&L statement instead of a CPA?

Accepted Answer

Most lenders require a CPA or licensed tax professional. A few accept enrolled agents. Bookkeepers generally don't meet lender requirements for P&L certification.

Question 3

How do lenders calculate income from my P&L statement?

Accepted Answer

Most average 12 to 24 months of net profit. Some use trending if income is increasing. Lenders may add back non-cash expenses like depreciation depending on program guidelines.

Question 4

What if my business shows a loss in some months?

Accepted Answer

Lenders look at the overall trend and average. Seasonal businesses can still qualify with adequate cash reserves. Consistent positive cash flow matters more than every single month showing profit.

Question 5

Can I use a year-to-date P&L if my income increased recently?

Accepted Answer

Some lenders accept YTD P&L for income increases. You'll still need historical documentation proving business existence. Larger down payments help when using shorter income history.

Profit & Loss Statement Loans in Gonzales: Income Verification for Self-Employed Borrowers