What this form is for
Banks require a personal financial statement when you apply for a business loan or line of credit to assess your personal creditworthiness and ability to guarantee the debt. This snapshot of your total financial position helps lenders decide whether to approve your loan and at what terms.
Before you start
- Recent statements for all bank accounts, retirement accounts, brokerage accounts, and any other liquid investments
- Current mortgage statements and outstanding loan balances for vehicles, student loans, credit cards, and personal debts
- Recent property tax assessments or appraisals for real estate you own, including your primary residence
- Titles and estimated values for vehicles, boats, or recreational equipment
- List of any business ownership interests with estimated values and your percentage stake
Step-by-step
1. Fill in your personal information at the top: full legal name, current address, Social Security number, and date of preparation.
2. List all cash and liquid assets with current balances: checking accounts, savings accounts, money market funds, and certificates of deposit. Include the institution name and account numbers.
3. Detail marketable securities and investments: stocks, bonds, mutual funds, and brokerage accounts at current market value, not what you originally paid.
4. Record real estate holdings: list your primary residence first, then any rental properties or land. Use current market value based on recent appraisals or county tax assessments. Georgia property tax records are public and lenders may verify.
5. Itemize other personal property: vehicles (use Kelley Blue Book or NADA values), retirement accounts like IRAs and 401(k)s, life insurance cash value, and any valuable collections or equipment.
6. Total your assets section. Most forms auto-calculate, but double-check the math.
7. List all liabilities starting with real estate debt: mortgages, home equity lines, and any liens. Include lender name, original loan amount, current balance, monthly payment, and collateral.
8. Add installment debts: auto loans, student loans, personal loans. Then list revolving debt like credit card balances.
9. Note any contingent liabilities such as guarantees on other loans or pending lawsuits.
10. Total all liabilities, then subtract from total assets to calculate your net worth. This bottom-line number is what lenders focus on most.
What lenders look for
- Banks want to see net worth at least equal to the loan amount you are requesting, preferably higher. Low liquidity compared to total assets raises red flags even if your net worth looks strong.
- Common mistakes include overvaluing real estate, forgetting to list credit card debt, or omitting cosigned loans. Georgia lenders often verify property values through county records, so be accurate and conservative.
- Update this statement every twelve months or whenever your financial situation changes significantly. Outdated statements delay loan processing.