Question 1

What makes a P&L statement acceptable to lenders in Palm Springs?

Accepted Answer

Your CPA must prepare the statement following standard accounting practices. It should cover 12-24 months and clearly show revenue, expenses, and net profit. Rates vary by borrower profile and market conditions.

Question 2

Can I use P&L loans for investment properties in Riverside County?

Accepted Answer

Yes, many lenders offer P&L loans for both primary residences and investment properties. Requirements may differ based on property type and intended use.

Question 3

How long does P&L loan approval take?

Accepted Answer

Timeline depends on documentation completeness and lender workload. Most closings complete within 30-45 days once all required statements and verifications are submitted.

Question 4

Do I need a licensed CPA or can my accountant prepare the P&L?

Accepted Answer

Most lenders require a licensed CPA to prepare and sign the profit and loss statement. Some accept enrolled agents or certified public accountants with proper credentials.

Question 5

What if my business is less than two years old?

Accepted Answer

Some programs accept one year of self-employment with strong income and credit. Others require two years in the same line of work, which may include prior employment.

Profit & Loss Statement Loans in Palm Springs - Financing for Self-Employed Borrowers