What this form is for
Banks require this form 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 business cash flow falls short.
Before you start
- Recent statements for all bank accounts, retirement accounts, brokerage accounts, and cash value life insurance policies
- Current mortgage statements and loan balances for any real estate you own, plus recent property tax bills or assessments
- Titles or recent statements for vehicles, boats, and other titled assets showing current payoff amounts if financed
- List of all credit cards, personal loans, student loans, and other debts with current balances and monthly payments
- Last two years of personal tax returns to verify income figures
Step-by-step
1. Complete the header section with your full legal name, current address, Social Security number, and contact information exactly as they appear on your tax returns and driver's license.
2. List all cash and liquid assets in Section 1, including checking accounts, savings accounts, money market funds, and certificates of deposit. Enter the current balance for each account as of the statement date.
3. Itemize marketable securities and retirement accounts in Section 2. Include stocks, bonds, mutual funds, IRAs, 401(k) plans, and similar investments at current market value, not original cost.
4. Detail all real estate you own in Section 3 with property address, current market value, mortgage balance, and equity. Illinois banks often verify values against county assessor records.
5. List personal property and other assets in Section 4, such as vehicles with make, model, year, and value minus any loan balance, plus any business interests you own.
6. Total all assets at the bottom of the assets section. Most forms auto-calculate this total if completed electronically.
7. Record all liabilities starting with mortgages and real estate loans, then installment debts like auto loans and student loans. Include creditor name, original balance, current balance, monthly payment, and collateral.
8. List all credit card balances, personal loans, taxes owed, and any contingent liabilities where you co-signed or guaranteed another person's debt.
9. Total all liabilities, then subtract total liabilities from total assets to calculate your net worth. Double-check this calculation.
10. Sign and date the statement. Illinois lenders require your signature certifying accuracy under penalty of law.
What lenders look for
- Banks focus on liquidity and debt-to-income ratio. Strong liquid reserves covering six months of debt payments signal stability and improve approval odds.
- Common mistakes include omitting contingent liabilities, overstating asset values, or forgetting to update the statement date. Outdated statements over 90 days old usually get rejected.
- Underwriters verify big-ticket items against credit reports and public records. Discrepancies between your statement and their findings raise red flags and slow approval.