What lenders look for
Whether it is tax returns or alternative documents above, lenders are looking for positive, consistent trading figures.
Lenders like to see you income figures increasing over time with no dramatic fluctuations from year to year.
The alternative documents show a sales figure without all the expenses deducted. Lenders calculate an annual sales figure from these and apply a net profit percentage in order to get an estimate of what the net income figure might be. This is compared to your estimate to determine if it is realistic.