Can you get a business loan when you don’t show any profit?

The answer to this is YES!  You can get an Unsecured Business Loan even if you write off all your business expenses and you don’t show any type of business profit. There is a specific type of business loan product that was created to cater to the self employed loan market. These types of loans can be attained by using the gross profit as well as adding back profits such as depreciation and interest on loans. Understanding how the bank or pension fund will work at crunching the numbers is the first part of understanding how their particular  business loan will work for you

The specific bank’s internal rules and charter will determine how their underwriting is done  to attain the loan. You started your business to make the maximum amount of money possible. Part of making more money is limiting the amount of money you will have to pay in taxes at the end of the year. Now the problem is how do you normally get a loan under your business if your business at least on paper does not show the necessary income requirements of most banks?

The first part you have to know is what do the banks look it. Do they look at gross or net? Do they add back income by not including interest on loans as a tax deductible expense. The more money you show on paper the better off you are but knowing the specific parts of your taxes that each bank ads back will be difficult and time consuming.


For questions please contact one of our loan specialists at 888-294-2584


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