Bank Statement Loans for Small Business Owners

Short answer

Owners of small companies often use business statements, an expense factor and proof of ownership. The lender wants to see steady revenue, a business that has operated long enough, and documentation that you own enough of it for the income to be yours.

Why statements fit small business owners

A small business owner's tax return is a product of choices: depreciation, equipment purchases, retirement contributions and owner pay all shape the bottom line. None of those choices change how much cash passes through the company. A statement-based review starts from that cash instead of the net profit line.

How a lender reads your deposits

With an LLC or corporation, deposits usually land in a business account. The reviewer totals eligible credits, removes transfers from your own accounts and loan proceeds, applies the program's expense factor and, where you share ownership, counts only your share. If you also pay yourself to a personal account, the reviewer will not count the same dollars twice.

What to watch for

Owner draws that appear as both business debits and personal deposits.
A recent spike from a one-time contract or an asset sale.
Partners whose ownership shares are not documented.
Seasonal dips that need a short, clear explanation.

Documents to gather

Business statements for the full window
Articles of organization or incorporation
An operating agreement or letter that shows your ownership share
A letter from a CPA, enrolled agent or licensed preparer if the program uses one
A business license where one applies

Illustrative scenario. An owner of a design studio shows steady monthly credits from about a dozen clients and a handful of larger project payments. After transfers are excluded and a factor is applied, the averaged figure is what the lender uses, not the net profit on her return.

General information only. Each program sets its own rules, and a lender must verify your income and ability to repay.

Small business owners by city

A loan officer who works with small business owners

Apply online or call, and we will tell you what to pull together first.

Apply now 704-343-8681

Frequently asked questions

Do I need to own 100% of the company?

No, but programs may set a minimum share, and the lender will count only your portion of the income.

Can my business be a brand new LLC?

A new entity can work if the work history behind it is documented. A lender may ask for the history of the business you came from.