to Self-employed: share business info get a loan?

Discussion in 'Business Operations' started by lawncuttinfoo, Oct 14, 2009.

  1. lawncuttinfoo

    lawncuttinfoo LawnSite Bronze Member
    Posts: 1,010

    It is for a home loan.

    They ended up backing off when I said I have a privacy policy with my customers and I would need to get written confirmation from each one who will be shared.

    Instead they asked for copies of the deposit slips showing that my deposits were made up of a bunch of smaller checks. I guess they were concerned that I was getting a gift.
     
  2. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    You nailed it....
     
  3. White Gardens

    White Gardens LawnSite Fanatic
    Posts: 6,776

    Home loans and business loans are harder to come buy, and they want way more info about your employment then they ever have in the past.

    I was checking into a business loan, and the loan officer wanted some financial info such as you are speaking about. He stated that there are too many other so-called business owners out there who are trying to say they have a business when they really have a hobby.

    Banks have really cracked down on loans, though it be their own fault for giving out bad loans in the past and hurting the legitimate ones who now don't have a chance from all the new strict loan policies.
     
  4. mommacutz

    mommacutz LawnSite Member
    Posts: 120

    That's odd. I'm a Realtor and have closed many customers that are self employed. There weren't any in the lawn care field but self employed. I have recently done a hairstylist on booth rental and she just had to show her taxes from the past 3 years (it was a bond loan). The banks are verifying them these days through the IRS.They take a average of the previous 2 years in order to obtain salary for qualifying. All was well with the income and credit so she was able to recieve her loan.

    May I ask which bank is this?

    May I ask what bank?
     
  5. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Its all up to the bank.

    Your credit score has the most to do with it.

    The lower your score, the more supporting information they are going to ask for.
     
  6. DoetschOutdoor

    DoetschOutdoor LawnSite Bronze Member
    from S. IL
    Posts: 1,818

    Its kinda weird that they would accept deposit slips..I could be depositing 10k/week and having 9500/week in expenses, how do deposit slips show anything? Glad to hear you got it worked out though.
     
  7. White Gardens

    White Gardens LawnSite Fanatic
    Posts: 6,776

    It shows that you are actually making the money that you have reported on your taxes rather than cooking the books.
     
  8. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,537

    It also shows cash flow which can be tapped into by them if the shrimp hits the fan.

    I have been asked for a current list of my accounts receivables a few years back when I first started. My loan officer merely glanced at it, made note of the figure at the bottom and handed it back. They've never asked for one since then and I've had several "ventures" between then and now.
     
  9. White Gardens

    White Gardens LawnSite Fanatic
    Posts: 6,776


    I like that quote. Can I use it. :laugh:
     
  10. MarkintheGarden

    MarkintheGarden LawnSite Bronze Member
    Posts: 1,072

    If you wanted a loan from me, I would ask as much and more.
    If I wanted a loan, I would be open to full disclosure, provided the info be used solely for the purpose intended.
     

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