P&L Statement Loans — For Business Owners Who Run Their Numbers

Your CPA Knows What You Actually Make. Now Your Lender Can Too.

If you own a business, your tax return is engineered to minimize taxable income — not to qualify you for a mortgage. The P&L Statement loan uses your accountant's 12 or 24-month profit and loss statement instead. No tax return. No 4506-C. No IRS involvement at all.

  • No Tax Returns Required
  • No IRS 4506-C
  • 12 or 24-Month P&L Accepted
  • Loans Up to $2,500,000
  • LTV Up to 80%
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Max Loan Amount

$2.5M

Up to $2M cash-out refinance

Max LTV

80%

Purchase · Up to 85% with 720+ FICO primary

Min Credit Score

660

Standard · 720+ for 85% LTV option

P&L Period

12 or 24 Mo

Prepared by licensed tax professional

Tax Returns

Not Required

No 4506-C · No Schedule C required

Occupancy

All Types

Primary, second home & investment

How the P&L Loan Works

Your Accountant Replaces the Tax Return

Here's the problem every business owner runs into: tax returns are designed to reduce your taxable income. Your accountant does their job well — depreciation, home office deductions, vehicle expenses, retirement contributions — and your Schedule C shows $85,000 of income on a business that brought in $280,000.

Conventional lenders use the Schedule C number. We don't. The P&L Statement loan uses your accountant's profit and loss statement — a professional document that shows revenue, operating expenses, and net income over a 12 or 24-month period. That net income is your qualifying income. No adjustments for depreciation schedules or retirement contributions that appear on the full tax filing.

The P&L must be prepared by a licensed professional — a CPA, Enrolled Agent, CTEC, or Tax Attorney — and it must be less than 90 days old at the time of closing. A PTIN-licensed preparer is also acceptable under certain conditions. The document goes directly to underwriting. The IRS is not contacted and no 4506-C is signed.


Three Reasons Business Owners Choose This Program

When Your Tax Return Isn't the Right Story

The P&L loan works best for business owners whose tax returns understate their actual earnings. Here are the most common situations.

Your Deductions Are Legitimate — But Brutal for Qualifying

Heavy Write-Off Businesses

Depreciation on equipment or real estate, home office deductions, vehicle expenses, retirement plan contributions — these are smart tax moves. But they cut your qualifying income down to a fraction of what you actually earned and deposited. The P&L starts after those deductions are applied at the business level, producing a cleaner net income number.

  • No Schedule C adjustments applied by the lender
  • Net income on P&L is the qualifying figure
  • Depreciation add-backs not required from you
  • Up to $2.5M, LTV to 80%
  • All occupancy types eligible
See If I Qualify

Your Accountant Has the Numbers. Let Them Speak.

CPA-Managed Businesses

If your CPA already maintains professional monthly or quarterly P&L statements for your business, the documentation path here is the simplest of any Non-QM program. No bank statements to gather, no 1099s to compile — just a clean P&L from the person who already knows your business finances.

  • P&L prepared by your existing CPA or EA
  • 12 or 24-month period accepted
  • No additional income documentation required
  • Credit scores from 660
  • Primary, second home & investment eligible
See If I Qualify

Pass-Through Business Income Without the Full Filing

S-Corp & Partnership Owners

  • S-Corp, LLC, and partnership income eligible
  • No K-1 analysis required from full returns
  • Professionally prepared P&L replaces complex filing review
  • Loans up to $2.5M
  • Up to 85% LTV on primary residence with 720+ FICO
See If I Qualify

The Process

How a P&L Statement Loan Works

The process is simpler than most self-employed borrowers expect. The P&L does the heavy lifting.

  1. 1
    Step 1

    Call Us First

    Before you order the P&L from your CPA, talk to us. We'll tell you exactly what format works, what period to use, and what the P&L needs to show — so your accountant gets it right the first time.

  2. 2
    Step 2

    CPA Prepares the P&L

    Your CPA, EA, or licensed preparer produces the 12 or 24-month P&L. It needs their signature, credentials, and a date within 90 days of your expected closing. Standard format is fine.

  3. 3
    Step 3

    We Calculate Your Qualifying Income

    We take the net income shown on the P&L, average it over the period used, and arrive at your monthly qualifying income. No Schedule C adjustments, no depreciation analysis — just the P&L net number.

  4. 4
    Step 4

    Pre-Approval in 24 Hours

    Manual underwriting means no waiting on automated systems. Most business owners hear back within one business day — with a clear qualification number and loan amount.

  5. 5
    Step 5

    Close Like Any Borrower

    Standard closing — title, appraisal, escrow, signing. The Non-QM documentation structure is invisible by closing day. You close like any other qualified borrower.

Know Before You Apply

What This Program Handles — and What It Doesn't

The P&L program is well-suited to specific business structures and income situations. Here's the full picture before you apply.

What Qualifies

  • 12 or 24-month P&L prepared by CPA, EA, CTEC, or Tax Attorney
  • PTIN-licensed preparer (conditions apply)
  • Sole proprietors, S-Corps, LLCs, and partnerships
  • Loan amounts up to $2,500,000
  • LTV up to 80% (85% on primary with 720+ FICO)
  • Primary, second home, and investment property
  • Purchase, rate/term refi, and cash-out refi
  • Credit scores from 660

What Doesn't Qualify

  • Your net income on a P&L would be low due to ongoing operating expenses — bank statement loans calculate income from gross deposits, which may be higher
  • You don't have an existing CPA relationship — bank statement or 1099 programs require less professional preparation
  • You need a loan above $2.5M — bank statement programs go to $4M
  • You need LTV above 80% without a 720+ credit score — bank statement programs go to 90% LTV from 620
  • You're an investor qualifying on rental income — DSCR loans don't require any personal income documentation

On the 85% LTV option: For primary residence purchases, LTV up to 85% is available for borrowers with a 720+ FICO score. The standard maximum is 80%. This higher LTV option requires all other qualifying conditions to be met but gives strong-credit business owners a lower required down payment.

On the 90-day P&L freshness requirement: The P&L must be dated within 90 days of closing. If you're starting the loan process and your P&L will expire before closing, your CPA can simply update the end date of the statement period. We recommend coordinating the P&L preparation timeline with your loan officer so it doesn't become a last-minute closing issue.

On using a P&L as an alternative to the 1099 expense factor: On using a P&L as an alternative to the 1099 expense factor: If you receive 1099 income and a third-party P&L shows your actual expenses are lower than 10%, that P&L can substitute for the fixed expense factor — potentially qualifying you on more income than the 1099 program's standard calculation. Ask your loan officer to run both scenarios.

Who This Is For

The Business Owners This Program Is Built For

P&L loans work best when your business is profitable, your accountant documents it well, and your tax return tells a different story than your actual earnings.

  • Construction & Contracting Business Owners

    High revenue, high equipment and materials deductions. Your P&L shows true operating profitability — your tax return often doesn't.

  • Restaurant & Food Service Owners

    High gross revenue with complex operating costs. A P&L captures your actual net income from operations without requiring analysis of the full tax filing.

  • Medical & Healthcare Practice Owners

    Physicians, dentists, therapists — professional practice owners who maintain clean P&Ls through their accounting firms and prefer not to share full tax filings.

  • Professional Service Firm Owners

    Law firms, accounting practices, consultancies — business owners with stable, professionally documented income whose tax returns are complicated by business structure.

  • Retail & E-Commerce Business Owners

    Inventory costs, cost of goods sold, and platform fees can mask real profitability on a tax return. Your CPA's P&L shows the actual bottom line.

  • Privacy-Minded Business Owners

    No 4506-C means the IRS is not contacted and your full tax filing is never provided to the lender. For owners who prefer to minimize the information shared, this is the cleanest path available.

The FlexPoint Difference

Why Business Owners Choose FlexPoint for P&L Loans

P&L underwriting requires experience with business income. Here's what we bring to it.

$2.5M
Max Loan
One of the highest limits available for P&L income qualification.
85%
Max LTV
Up to 85% LTV on primary purchase for borrowers with 720+ credit.
0
IRS Contacts
No 4506-C signed. No tax return submitted. The IRS is not involved in this process.
Since 1996
In Business
Nearly 30 years helping business owners qualify when conventional lenders couldn't make it work.
$5B+
Loans Funded
Over $5 billion closed. We know how to underwrite business income correctly.
Free Consultation

See What Your P&L Qualifies For

Tell us about your business and what you're trying to accomplish. We'll review your scenario and let you know exactly what your P&L would need to show — before you spend anything with your CPA. No credit pull, no pressure.

$300,000
$50,000$3,500,000+
  • SSL Secured
  • No Credit Pull
  • NMLS #243082
  • Multi-State Licensed

By submitting this form, you consent to be contacted by FlexPoint Inc. regarding your inquiry. This is not a commitment to lend. All loans subject to credit approval. Restrictions apply. Some products may not be available in all states. FlexPoint Inc. NMLS #243082.

FAQ

Frequently Asked Questions About P&L Statement Loans

The questions business owners ask us most before applying.

Your Business Is Profitable. Your P&L Can Prove It.

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