Personal Financial Statement
A statement of personal assets, liabilities and net worth for each guarantor, used to assess outside collateral, liquidity and global cash flow.
Each proprietor, general partner, managing member, owner of 20% or more and any guarantor, plus their spouse where community property or joint assets apply.
Section by section
- 1
Assets
Cash on hand and in banks, savings, IRA and retirement accounts, accounts and notes receivable, life insurance cash surrender value, stocks and bonds, real estate, automobiles and other personal property. Retirement accounts are listed at full value but most lenders discount them for liquidity.
- 2
Liabilities
Accounts payable, notes payable, installment accounts for auto and other, loans against life insurance, mortgages on real estate, unpaid taxes and other liabilities. Monthly payments are required for installment debt because they feed the personal debt service in global cash flow.
- 3
Section 3 and 4 · Stocks, bonds and real estate schedules
Each security with number of shares, cost, market value and date. Each property with type, address, purchase date, original cost, present value, mortgage holder, balance, payment and status. Rental properties must reconcile to Schedule E.
- 4
Section 5 to 8 · Other assets, unpaid taxes, other liabilities, life insurance
Describe each item, and for taxes state the type, to whom owed and whether a lien attaches. Contingent liabilities, including personal guarantees on other business debt, must be disclosed in the Other liabilities section.
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