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 document shows your complete financial picture on a specific date, proving you have the resources and stability to repay debt.
Before you start
- Recent statements for all bank accounts, retirement accounts, brokerage accounts, and cash value life insurance policies
- Current mortgage statements and balances for all real estate you own, plus recent property tax assessments or appraisals
- Titles and estimated current values for vehicles, boats, and recreational equipment
- List of all personal debts including credit cards, auto loans, student loans, and any money owed to individuals
- Documentation of other significant assets like business ownership interests, valuable collections, or pending inheritances
Step-by-step
1. Fill in the statement date at the top. Use the most recent month-end date when your account balances are known and verifiable.
2. Complete the Assets section by listing each item with its current fair market value, not what you paid. For real estate, use recent appraisals or county assessor values. For retirement accounts, use the most recent quarterly statement balance.
3. Enter liquid assets first: cash in checking and savings, money market funds, and certificates of deposit. Banks value liquidity highly.
4. List securities and investments including stocks, bonds, mutual funds, and brokerage account values. If you own a business, estimate its fair market value conservatively or note book value from recent financials.
5. Record personal property including primary residence, investment real estate, vehicles, and valuable personal items. For Florida homestead property, note that designation as it affects creditor protections.
6. Total all assets using the form's calculation line. Double-check your addition.
7. Move to the Liabilities section. List every debt: mortgages, car loans, credit card balances, student loans, personal loans, and tax obligations. Include the creditor name, account number, current balance, and monthly payment for each.
8. Add contingent liabilities if you've co-signed loans or guaranteed business debts. Florida courts can pursue personal guarantors aggressively.
9. Total all liabilities, then subtract from total assets to calculate your net worth. This bottom-line number is what lenders focus on most.
10. Sign and date the statement. Most banks require both spouses to sign if you're married, even if applying individually, because Florida is not a community property state but has spousal protections.
What lenders look for
- Underwriters verify large assets, so inflating values backfires during due diligence. Be honest and conservative, especially with business interests and personal property where values are subjective.
- A debt-to-asset ratio above sixty percent raises red flags. If your liabilities are high relative to assets, prepare a brief explanation of your repayment plan.
- Leaving out debts is the most common mistake and can be considered fraud. Include everything, even informal family loans, to maintain credibility.