Question 1

Do I need two years of business history for either loan?

Accepted Answer

Yes. Both bank statement and P&L loans require two years of documented business history. Lenders average 24 months of deposits or P&L statements to calculate your qualifying income. Newer businesses don't qualify.

Question 2

Can I use bank statements if my business is only one year old?

Accepted Answer

No. Bank statement loans require two years of seasoned business account history. Newer businesses must wait or explore alternative programs that accept shorter histories.

Question 3

What down payment do I need for a bank statement loan in Banning?

Accepted Answer

Conventional bank statement loans require a minimum 10% down payment. On a $500,000 purchase in Banning, that's $50,000 down. Some lenders offer 5% down programs but with higher rates and stricter income documentation.

Question 4

Is a P&L loan slower than a bank statement loan?

Accepted Answer

Yes. P&L loans require an accountant to prepare or attest to your statement, which adds 1-2 weeks. Bank statement loans use documents you already have. If you're closing in 30 days, bank statements are faster.

Question 5

Which loan works better if I have a lot of business deductions?

Accepted Answer

P&L loans. If your business has significant rent, equipment, or payroll expenses, a P&L statement shows your true net profit after deductions. Bank statements can't reflect those expenses and may overstate your income.

Bank Statement vs P&L Loans in Banning: Which Fits Your Business Income?