What this form is for
Banks require a Personal Financial Statement when you apply for a business loan, line of credit, or personal guarantee. It shows your complete financial picture outside the business so lenders can assess your ability to repay if the business cannot.
Before you start
- Recent bank statements for all checking, savings, and money market accounts showing current balances
- Investment account statements including brokerage accounts, retirement accounts (401k, IRA), stocks, bonds, and mutual funds with current market values
- Real estate documentation showing property addresses, current market values, outstanding mortgage balances, and monthly payments for all owned properties
- List of all debts including credit card balances, auto loans, student loans, personal loans, and any other liabilities with creditor names, account numbers, balances owed, and monthly payments
- Recent pay stubs or tax returns if you need to document annual income from employment or investments
Step-by-step
1. Complete the personal information section at the top with your full legal name, current address, phone number, Social Security number, and date of birth. If married, include spouse information as California is a community property state and spouse finances may be relevant.
2. List all cash and liquid assets with specific account numbers and institutions. Include checking accounts, savings accounts, money market accounts, certificates of deposit, and cash value of life insurance policies. Enter the current balance for each.
3. Itemize marketable securities and investments. List stocks, bonds, mutual funds, brokerage accounts, and retirement accounts separately with the financial institution name and current market value for each holding.
4. Document real estate assets by entering the property address, type of property (primary residence, rental, vacant land), current fair market value, and the date you acquired it for each property you own.
5. List other personal assets including automobiles (make, model, year, value), business interests showing ownership percentage and estimated value, notes receivable owed to you, and any other valuable assets like jewelry, art, or collectibles if significant.
6. Total all assets in the designated line. Most forms auto-calculate this, but verify the sum yourself.
7. List all liabilities starting with real estate debt. For each mortgage, enter the lender name, original loan amount, current balance, monthly payment, and the property address that secures it.
8. Itemize all other debts including credit cards, auto loans, student loans, personal loans, and any contingent liabilities. Include creditor name, original amount, current balance, and monthly payment for each.
9. Total all liabilities and subtract from total assets to calculate your net worth. This bottom-line number is what lenders focus on most.
10. Sign and date the form. California lenders typically require notarization for amounts over certain thresholds, so ask your loan officer if that applies.
What lenders look for
- Underwriters verify liquid assets first, so never inflate bank balances or include funds you cannot access immediately. They will request statements to confirm every number.
- California community property law means your spouse's debts may affect your creditworthiness even if you apply individually. Disclose all marital liabilities to avoid delays or rejection.
- The debt-to-asset ratio matters more than net worth alone. Lenders want to see that liquid assets significantly exceed short-term debts and that real estate equity is not your only cushion.