Avatar's Blog

» Financial Statements for Hard Money Loans

Posted on 3/27/2005

Commercial hard money lenders want to see some proof ability to pay the loan according to the terms of the contract. In general, you will be asked to present 2 years' tax returns and 2 years' P&Ls (profit and loss sheets), and a financial statement for the business and all guarantors.

A financial statement is merely a statement of assets and liabilities. Standard forms for entry of this data (also known as a 1003) are available as part of the commercial loan application.

Assets such as personal belongings, furnishings, vehicles, etc., while entered onto the form, hold less weight than assets such as real estate, stocks, bonds, life insurance policies and other investments.

Posted in Miscellaneous