What this form is for
Banks require a Personal Financial Statement when you apply for a business loan, line of credit, or personal guarantee. This snapshot of your personal assets, liabilities, and net worth helps underwriters assess your creditworthiness and ability to repay if your business cannot.
Before you start
- Recent statements for all bank accounts, brokerage accounts, retirement accounts, and cash-value life insurance policies showing current balances
- Current mortgage statements, auto loan balances, credit card balances, student loans, and any personal notes payable with creditor names and amounts owed
- Recent property tax assessments or appraisals for real estate you own, plus the year purchased and original cost
- Market values for vehicles, boats, or other titled assets along with any lien information
- Documentation of other assets like business ownership interests, notes receivable owed to you, or valuable personal property
Step-by-step
1. Complete the header section with your legal name, current address, Social Security number, and the statement date. Use the date you are completing the form as your valuation snapshot date.
2. List all cash and liquid assets including checking accounts, savings accounts, money market funds, and certificates of deposit with the financial institution name and current balance for each line item.
3. Itemize marketable securities such as stocks, bonds, mutual funds, and brokerage accounts separately. Show the description and current market value, not what you originally paid.
4. Enter real estate holdings on separate lines with property address, date acquired, original cost, and current market value. Ohio real estate should reflect recent county auditor assessments or professional appraisals.
5. Document retirement accounts including IRAs, 401(k) plans, pension values, and annuities with the current vested balance. Note that many lenders discount these at 50 to 70 percent for net worth calculations.
6. Record other personal property such as automobiles, recreational vehicles, jewelry, and collectibles at fair resale value, not replacement cost or sentimental value.
7. List all liabilities starting with notes payable to banks and others, showing creditor name, original balance, current balance, payment amount, and how the debt is secured.
8. Enter mortgage debt, credit card balances, auto loans, and any contingent liabilities where you have co-signed or guaranteed another obligation.
9. Calculate total assets and total liabilities, then subtract liabilities from assets to determine your net worth. Double-check all arithmetic before signing.
10. Sign and date the statement. Ohio lenders typically require both spouses to sign if married, even if applying individually.
What lenders look for
- Underwriters verify liquid assets first, so inflating cash or securities backfires quickly when they request bank statements during due diligence. Stick to documented, provable values.
- The debt-to-net-worth ratio matters more than gross assets. Keep credit card balances low and avoid listing assets you cannot quickly liquidate at the values claimed.
- Common errors include forgetting contingent liabilities, overstating real estate using Zillow estimates instead of appraisals, and omitting co-signed debts that appear on your credit report.