Short answer
Name the source, show the paper trail and say whether it is income. A deposit from a customer with an invoice is easy to accept. A transfer from savings or the sale of an asset is usually not counted as income, but a lender may accept it as an asset.
The three common answers
| What the deposit is | What to provide | How it is usually treated |
|---|---|---|
| A customer payment | Invoice or contract and proof of the work | May count as income |
| A transfer from your savings | Statement from the other account | Not income; may count as an asset |
| Sale of a vehicle or equipment | Bill of sale and title | Not income from the business |
| A gift from a relative | Gift letter and the donor's statement | Not income; subject to program rules |
| A refund or reimbursement | The original receipt or order | Usually excluded |
Write it down
A two-sentence note per large deposit saves back-and-forth. Include the date, the amount, the source and the supporting document.
What if there is no paper trail?
A deposit you cannot document is likely to be left out of income. That can reduce the monthly figure, so it is better to know now than late in the process.
Related
Ready to talk it through?
Apply online or call. A loan officer will review your situation.
Frequently asked questions
Can a business loan show up as a deposit?
It can, and a lender will usually exclude loan proceeds from income. Keep the loan agreement handy.