Question 1

Can I use a P&L loan if I've been self-employed less than two years?

Accepted Answer

Some lenders accept 12 months of statements if income is strong and stable. Newer businesses face tighter requirements and may need larger down payments.

Question 2

Does my CPA need to be local to Visalia?

Accepted Answer

No, but they must be licensed and willing to verify their credentials with the lender. Some lenders require CPA licensing in California specifically.

Question 3

How do P&L loans handle business write-offs?

Accepted Answer

Your CPA calculates net income after legitimate expenses. Lenders use that figure, not your tax return's lower taxable income.

Question 4

Can I combine P&L income with W-2 income from a spouse?

Accepted Answer

Yes, lenders can blend income sources. Your self-employed income uses P&L documentation while W-2 income follows traditional verification.

Question 5

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

Accepted Answer

Lenders review the full statement period, not individual quarters. Seasonal businesses often show uneven quarterly results that still support approval.

Profit & Loss Statement Loans in Visalia: Financing for Self-Employed Borrowers