self employed business loans and No doc

Most self employed people are in the business world to make a profit.  When calculating corporate taxes there are two numbers that the banks look at. These are gross profit and adjusted net profit. The gross profit is the total amount of profit the business made and the adjusted net profit is the amount of money you pay taxes on.

By having a sharp accountant most business owners will take their gross profit and write off so many things that they show little adjusted gross profit. The problem is when going to a bank all the banks go off of the adjusted net profit. If you show little adjusted net profit or if you don’t show any profit no banks will approve you. Your debt to income ratios will be so high that it will never get past underwriting.


Getting a business loan no doc is one of the hardest things to do. Specialty banks are the only ones that do this and they don’t advertise it. Banks don’t want to tell the world that they have products where you don’t have to prove your income. Its not good for the shareholders to hear this. Also what exactly is a no doc loan.

Different banks have different meanings for it.  Some banks go off the gross profit. Some banks go off the adjusted net profit but add back amortization and depreciation. Of course some banks don’t care if you are in a special market sector or if they cater to your industry i.e doctors, teachers etc.

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