Bank Statement Converter for a Law Firm Business Loan
Law firms applying for an SBA loan, line of credit, or practice acquisition financing need to show consistent revenue alongside any irregular case-fee income. Converting the operating account — not the IOLTA trust account — to Excel gives lenders the business cash flow picture without commingling client funds, a critical distinction in legal practice financing.
Key Benefits
- Show operating account deposits from earned retainers, case fees, and hourly billing
- Explicitly exclude IOLTA trust account activity from income documentation
- Document monthly revenue consistency despite the lumpy nature of case settlements
- Show payroll, rent, and software outflows to demonstrate the firm's operating overhead
- Export a 12–24 month Excel file the lender can use to compute average monthly revenue
How It Works
- Step 1: Upload statements from your firm's operating account only — not the IOLTA trust account
- Step 2: The converter extracts all deposits and major expense transactions
- Step 3: Download Excel and label each row as earned income, expense, or inter-account transfer
- Step 4: Submit to your lender alongside firm tax returns, a client revenue breakdown, and partner bios
Frequently Asked Questions
- Our firm has a contingency practice with large but irregular settlement fees. Will a lender count those?
- Yes, but they will average them over 24 months. A firm that received $800,000 in one settlement and minimal income in the prior 11 months has the same qualifying average as a firm generating $66,000 per month consistently.
- Should I include our IOLTA trust account in the bank statement package?
- Never include the IOLTA trust account. Those funds belong to clients and are not income. Commingling trust account data with income documentation confuses underwriters and is an ethical violation.
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