Avatar's Blog
» P&Ls Required for Hard Money Loans
Borrowers are sometimes overwhelmed by having to provide P&Ls from last year and this year YTD to a hard money lender. Don't worry. Avatar is not looking for a book of information, but merely a single sheet indicating the income from all sources on a line by line basis and the expenses on a line by line basis as well.
If you are tending well to your business, you will have P&L statements which you update at least monthly. They give you - and now Avatar - a picture of the financial capabilities of your company. Avatar will remove the sums you are currently paying for any loans that will be paid off by the Avatar loan and will insert the amount you will be paying for the proposed Avatar loan. Your P&L will demonstrate whether the monthly payments are affordable after all other expenses have been paid. Avatar will look to see that you have a few dollars left over each month to put in your pocket as well. This provides a financial buffer in case there is a 'bump in the road'.
