What this form is for
Banks require this form when you apply for business loans, lines of credit, or personal guarantees. It shows your complete personal financial picture on a specific date so the lender can assess your ability to repay debt and your creditworthiness outside the business itself.
Before you start
- Recent statements for all bank accounts, investment accounts, retirement accounts, and brokerage accounts showing current balances
- Current mortgage statements and loan payoff amounts for all real estate, vehicles, and personal debts
- Recent property tax assessments or appraisals for real estate you own
- List of all credit card balances, student loans, and other liabilities with account numbers and creditor names
- Documentation of income sources including recent pay stubs, tax returns, and investment income statements
Step-by-step
1. Fill in your personal information at the top including full legal name, home address, Social Security number, and the statement date you are using (typically the end of last month or current 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.
3. Itemize marketable securities such as stocks, bonds, mutual funds, and brokerage accounts separately with the description and current market value.
4. Detail all real estate you own with property address, current market value, the amount of mortgage owed, and your equity. New York residents should use recent tax assessment values or professional appraisals from the last 12 months.
5. List other major assets including retirement accounts, life insurance cash value, vehicles with year/make/model, business ownership interests, and personal property of significant value.
6. Total all assets in the designated subtotal and grand total lines as indicated on the form.
7. Itemize all liabilities starting with real estate mortgages, then credit cards, auto loans, student loans, personal loans, and any other debts with creditor name, account number, balance owed, and monthly payment.
8. Calculate total liabilities where indicated on the form.
9. Subtract total liabilities from total assets to determine your net worth and enter this figure in the designated field.
10. Sign and date the form certifying accuracy. New York banks may require notarization for loan amounts above certain thresholds.
What lenders look for
- Banks focus heavily on your debt-to-asset ratio and liquidity, meaning cash and assets you can quickly convert matter more than illiquid holdings like collectibles or partial business interests.
- Avoid common errors like overstating real estate values beyond recent appraisals, forgetting contingent liabilities like cosigned loans, or omitting credit card debt.
- Update this statement every 90 days during active loan negotiations since stale financials over four months old often require resubmission and delay approvals.