Getting a loan approved becomes an overwhelming task for entrepreneurs when they have just begun their journey of business. To ensure you return the funds to the bank, they expect you to generate sufficient funds in your business. Fortunately, to help you get the required cash, you can avail help from stated income business loans. The stated income commercial loans are one of the best options for workers and contractors who get cash payments.
Understanding Stated Income Business Loans
Stated income business loans are one of those funding options that involve financial paperwork. The stated income loan is also known as a no documentation loan. The tax returns, bank statements, asset proof, and request income verification is often demanded by lenders. However, the self-contractors face difficulties producing this kind of paperwork.
The true value of the produced money might not be displayed by tax returns. The requirements that banks and lenders demand as proof might not be sufficed by the adjusted gross income. The self contractors might receive payments from various income streams, which they are unable to display. No wonder why stated income commercial loan is apt for individuals who are expecting cash flow.
How to Qualify For Stated Income Commercial Loans?
The minimum qualifications required for stated income commercial loans:
- You must have 6 months of experience in the business domain.
- You must have a credit score of a minimum of 500 and above.
- Your annual revenue should be $200,000.
- A majority of the industries and businesses are welcome.
- No need for personal collateral.
Things You Need to Apply for Stated Income Commercial Loan
You don’t require much paperwork to apply for stated income commercial loans, unlike other financial types. Some of the documents that you would be asked to produce are business bank statements, loan application of one page, merchant processing statements.
Applying for Stated Income Commercial Loan? Know This
If you are planning to apply for stated income commercial loans, then you must start to ask a few things yourself. Like what business financing types does the loan offer? Does the loan advisor have the in-depth to assist you with the product that caters to your requirements?
You can make a well-informed decision when considering all these points. Ensure to go through the proposals and agreements properly before you commit to the loans. Some of the key points that you must double-check are the funding fee, overall cost, frequency of payment, and duration.