For the self-employed, which figure would a lending institution make their decision from, my gross revenue, or the adjusted gross (after expenses)? To telll you the truth its a big margin.
2007-07-03 21:56:31 · 4 answers · asked by nomad69 1 in Business & Finance ➔ Taxes ➔ United States
Gross revenue won't have much of anything to do with your ability to repay a loan - the thing that matters is your net after expenses. So that's what they'll look at.
2007-07-04 04:30:46 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
They will look at you net income, due to it be what you have to pay the loan back. Your credit will also have a big part on lending you money. So when you go in make sure you have all your ducks in a row.
2007-07-04 06:49:31 · answer #2 · answered by Mel 1 · 0⤊ 0⤋
Generally, they will consider income after expenses are taken out, since that is all you will have to repay the loan with.
2007-07-04 00:00:45 · answer #3 · answered by aj485 5 · 0⤊ 0⤋
I'm sure that a lending institution would use a combination of your financial health.
Plus, I think that cash flow would also be used.
2007-07-04 00:10:32 · answer #4 · answered by Steve 6 · 1⤊ 0⤋