Revenue − cost of goods = gross profit; − operating expenses = operating profit; − interest and taxes = net profit. Build it monthly from bank records.
Check my optionsFinancial management
A profit and loss statement (P&L) summarizes revenue, costs and profit over a period. Even a simple monthly P&L lets you see margins, spot rising costs and answer funder questions with confidence.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
Net cash, total payback and payment shown before you sign.
A person reviews your revenue, time in business and bank activity, often within hours.
Your file goes to funders that fit it, so offers can be compared.
Approved files are usually funded the next business day.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
Choose the period and method. Most small businesses produce a monthly P&L and a year-to-date version. Cash-basis accounting records income when received and expenses when paid; accrual accounting records them when earned or incurred. Cash basis is simpler and common for small firms; accrual gives a truer picture when you have significant receivables or payables. Be consistent.
Structure it in layers. Revenue at the top, including all sales, minus returns and discounts. Cost of goods sold next: materials, merchandise, direct labor and anything else tied directly to what you sold. Revenue minus cost of goods sold is gross profit. Then list operating expenses, such as rent, salaries not in cost of goods, marketing, insurance, software and utilities. Gross profit minus operating expenses is operating profit. Finally, interest and other items, then taxes, leave net profit.
Accounting software builds the P&L automatically from categorized transactions, so the quality of the report depends on categorizing correctly and reconciling with bank statements every month. Owner draws are not expenses on most small-business P&Ls, and loan principal is not an expense; interest or financing costs are, depending on how the product is structured and how your accountant treats it.
For funding, a P&L is required by most banks and SBA lenders and may be requested by revenue-based funders on larger amounts. It should reconcile with your bank deposits and your tax returns. MFE considers credit from 500 and reviews statements first, but a clean P&L strengthens any larger or bank application.
Here is a revenue-based offer, which is reviewed alongside a P&L on larger requests. Illustrative numbers.
| Funding for the project | $100,000 |
| Total payback (factor 1.45) | $145,000 |
| Term | ~40 weeks |
| Payment per week | $3,625 |
| Monthly payment the project must cover | $15,696 |
| Your estimate of added monthly profit | $20,000 |
| Verdict | Pays back within the term |
Illustrative. Replace the estimate with your own numbers before applying.
| Revenue | All sales minus returns |
| Cost of goods sold | Direct costs of what you sold |
| Gross profit | Revenue minus COGS |
| Operating expenses | Rent, salaries, marketing, software |
| Net profit | After interest, other items and taxes |
Good fit:
Probably not yet:
A summary of revenue, costs and profit over a period.
Cash is simpler; accrual is more accurate with significant receivables. Be consistent.
Usually not on a small-business P&L; they reduce equity instead.
No; interest or financing cost may be, depending on structure and accounting treatment.
Sometimes on larger requests; banks and SBA lenders usually do.
Differences raise questions about accuracy.
Example uses for illustration only.
Before you apply:
One secure application. A soft credit pull to start. No obligation to accept an offer.
Apply for Funding