An In-Depth Guide to How Lenders View Your Tax Returns

Posted by fundera under Taxes
From https://www.fundera.com 2850 days ago
Made Hot by: leonesimmy on July 5, 2016 12:11 pm

Why do lenders ask for your tax return? We'll walk you through what lenders are looking for and what it means for your business.

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Comments

Written by lyceum
2844 days ago

Gretchen Schmid / fundera: Welcome to BizSugar!

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Written by ShawnHessinger
2844 days ago

I guess I have the same question as Heather. And then I guess, on top of that my other question might be, how do tax returns compare to other factors -- amount being borrowed, collateral etc. How does it factor into the equation as far as importance?

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Written by fundera
2842 days ago

I'd say the importance depends on the lender. Each lender has their own underwriting criteria and process. But for most lenders, the tax return is used to verify numbers you report during the loan application process. They are making sure a business is able to repay the sum they are borrowing.

The size of the loan, use of collateral, and other factors come from that information.

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Written by HeatherStone
2844 days ago

Hi guys,

Thanks so much for this in depth look at what may be -- for small businesses anyway -- a rarely considered part of the lending process. If this one aspect of your tax return you could name which lenders view with the greatest scrutiny, what do you think it would be?

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Written by fundera
2842 days ago

Thanks for the great question! I'd say the one thing they look at with the greatest scrutiny is the profitability (net income) of your business.

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