Use personal bank statements if most of your income lands in your personal account, and business statements if your money flows through a business account. Both types of bank statement loans let self-employed people qualify without tax returns, the difference is which account the lender looks at, and how they count your income. I help business owners pick the right one all the time, and the best choice usually comes down to how you handle your money. Let me explain simply.
What Both Business and Personal Bank Statement Loans Have in Common
Both personal and business bank statement loans do the same basic job: they prove your income using your deposits instead of tax returns.
This helps self-employed people whose tax returns make their income look smaller than it really is, because of business write-offs.
To understand the wider category, see our guide on what a non-QM loan is.
The main difference is which account the lender reviews — and that changes how much of your deposits count as income.
How Each One Works
Personal Bank Statement Loan
The lender looks at your personal checking or savings account. They usually count most of your deposits as income, because personal deposits are seen as money you’ve already taken out of the business for yourself. This is simple and works well if you pay yourself into a personal account.
Business Bank Statement Loan
The lender looks at your business account. But here’s the key: they don’t count all the deposits as income, because a business has expenses. So they apply an expense factor — they assume a percentage of the money goes to running the business and count the rest as your income.
Side-by-Side Comparison
| Feature | Personal Statements | Business Statements |
|---|---|---|
| Which account | Your personal account | Your business account |
| How income is counted | Usually most deposits count | An expense factor is subtracted first |
| Best for | Owners who pay themselves personally | Owners whose income stays in the business |
| Simplicity | Often simpler | Slightly more complex |
Which One Gives You More Income?
This is the real question, and the answer depends on your expenses:
- If your business has low expenses, a business statement loan can hurt you, because the expense factor subtracts costs you don’t really have. A personal statement loan may count more of your money.
- If you mostly move money into your personal account anyway, personal statements are simple and often show your income clearly.
- If your income mostly stays in the business and you have normal expenses, business statements may work fine.
My advice to clients: ask the lender to try it both ways and compare. The right choice is whichever one shows your true income best. For a deeper look at how income is figured, see our guide comparing P&L loans and bank statement loans.
Takeaways on Person and Business Bank Statement Loans
Personal and business bank statement loans both let you qualify without tax returns — the difference is which account the lender uses. Personal statements often count more of your deposits, while business statements subtract an assumed expense factor first. If your business has low expenses, personal statements may give you more qualifying income. The smartest move is to have a lender run both ways and pick the one that reflects your real earnings. Keep your accounts clean and organized, and compare lenders before you decide.
Frequently Asked Questions
Which gives me more income, personal or business statements?
It depends on your expenses. Personal statements usually count most of your deposits as income, since that money is already “yours.” Business statements subtract an expense factor first, assuming part of your deposits covers business costs. If your real expenses are low, that assumption can shortchange you, so personal statements may give you more. If your income mostly stays in the business, business statements can still work. Ask a lender to calculate both ways and compare the results.
What is an expense factor on a business bank statement loan?
It’s a percentage the lender subtracts from your business deposits to account for the cost of running your business. For example, if a lender uses a 50% expense factor, they count half of your deposits as income. The idea is that not all the money in a business account is profit. If your real expenses are lower than the factor assumes, you lose qualifying income — which is why low-expense businesses sometimes do better with personal statements or a P&L loan.
Can I use both personal and business statements together?
Some lenders allow a combination, but many pick one type based on your situation. Mixing accounts can get confusing, and lenders want a clear, consistent picture of your income. The cleaner approach is usually to choose the account that best reflects your earnings and use that. If you’re not sure, a good lender or broker can look at both and recommend which gives you the strongest, most accurate income calculation.
References
- Internal Revenue Service. (2026). Self-employed individuals tax center.
Home Equity Mart is not a lender and does not make credit decisions. This article is general education, not financial or legal advice. Verify any lender’s license at NMLS Consumer Access. Equal Housing Opportunity.
