Avatar's Blog
» Why Tax Returns and Credit Reports?
Avatar is not a bank lender - we don't fund basd on FICO scores, etc. We don't care what your mother's uncle dog died of and we won't ask why it was your fault. That's what banks do. We lend on loans that make sense for the borrower as well as the lender.
So why do we ask for tax returns and FICO reports? When determining the relative risk factors in any loan, it is prudent to see how low that risk can be proven. If you have solid tax returns over the past few years, that will bolster your request. If not, we won't decline the loan. If your FICO shows low FICO scores, but your P&Ls show strong income, then we know why you are coming to hard money. Banks don't like low FICO scores, but low FICO is not an insurmountable obstacle to our funding of your loan.
We use these elements in our due diligence to see that you are who you say you are and that your numbers 'make sense' all around. Before we do our due diligence, take a moment to do some due diligence of your own. Take a look at your own numbers to see whether the loan you are requesting makes sense for you and your business. If so, you'll be able to make a reasonable argument to Avatar as well.
