Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Lenders reject statements from bookkeepers or borrowers themselves.

Question 2

Can I use one year of P&L history?

Accepted Answer

Some lenders accept 12 months. Others require 24. The right lender depends on how long you've been self-employed.

Question 3

How does my rate compare to a conventional loan?

Accepted Answer

P&L loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 4

Do I need a large down payment?

Accepted Answer

Most P&L lenders want 10-20% down minimum. Stronger credit and longer business history can help on the lower end.

Question 5

Does my business need to be in Cloverdale?

Accepted Answer

No. Lenders care about documented income, not where the business operates. Location is not a qualifying factor.

Question 6

Is a P&L loan better than a bank statement loan for me?

Accepted Answer

Depends on your financials. We look at both options and match you to whichever lender prices your deal better.

P&L Loans for Self-Employed Buyers in Cloverdale