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Bank Statement Loans: A Solution for Small Business Owners

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The COVID-19 pandemic brought a lot of changes to life around the world.  Masks, travel restrictions, and Uncle Artie constantly trying to convince you that the deep-state was taking over by unleashing the virus.  

One other really big change was what people did for a living, AKA “work”.  At first, many were hoping to simply keep their job.  But as the world changed, so did employers, employees, and the job market.  Employers had to figure out how to conduct business remotely.  Employees had to figure out how to work remotely.  Anyone with kids know what a struggle this was.  The job market was pretty fascinating though.  Many people actually began starting a business after the initial phase of the pandemic.  

Don’t believe me?  A paper from the National Bureau of Economic Research (NBER is what we call it on the streets) shows that business formation sky-rocketed beginning in mid-2020.  More business formation applications have occurred from that point through May 2021 than at any other point since they’ve been monitoring this (2004 is when it started if you really want to know).

It’s interesting to see some of these jobs.  All I have to do is look at my Instagram feed.  I follow someone who sells old Grateful Dead shirts (@primarily_dead if you’re into this).  I don’t know if this is their only source of income, but given the price this place fetches for these classics, I’d imaging they are doing ok.  

While the shift in the way we all work has created some very rewarding benefits - like being able to work from the house, reduce or eliminate a commute, or just find work that is both rewarding and can pay the bills - it has also created an issue when it comes time for small business owners to apply for a mortgage.  Big banks typically want documents that small business owners simply don’t have like paystubs and/or W2s.  Even if they do, at times these documents don’t accurately reflect their earnings.  

This is where a bank statement loan can be a solution for small business owners.

Bank statement loans have been around for quite a while.  These loans utilize 12-24 months of the borrower’s bank statements as the main source of income verification.  This allows the lender to get a long term view at the applicant’s income, and thus verify their ability to re-pay a loan.  Bank statements often give a more detailed view of an applicant’s finances as well.  The long term view helps if business is fueled by a certain time of year or uneven due to working on commission.  

Did you start a new business during the pandemic?  Are you thinking of applying for a mortgage or buying a house soon?  If so, you’ll want to definitely consider a bank statement mortgage.  And there’s no better place to start than Truss Financial Group.  Truss takes a common sense approach to lending, and they are experts in bank statement loans.  They can help you navigate the process and find the right option for you.  

So go on, keep selling Grateful Dead t-shirts.  Bank statement loans will be ready when you are.

 

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