Tags: Solve Factoring Problems OnlineEssays Titles ItalicsColumbia Law School Personal EssayProblem Solving DefineIntroduction On Friendship EssayAn Example Of Business Plan
Lenders, and most equity investors, want to know not only about your business's financial position, but also about the personal financial profile of the business's owners.The Personal Financial Statement Worksheet is used by a Midwest regional bank.The equation here is that Assets minus Liabilities equals Net Worth.
The personal financial statement shows assets and liabilities and net worth at a specific point in time, so just prepare the document with the most recent information you have.
Your lender understands that some of this information is changing as you go about making your personal financial transactions (making payments, for example). As part of your preparation for presenting your business plan, you should run a complete credit report on yourself, because the lender will certainly do this.
It outlines all the information that conventional lenders will want to know about your personal finances, from a description of your assets and liabilities to identification of your sources of income.
You can get a good idea of what lenders are looking for, how your financial profile will appear to them, and the importance of carefully completing such a form before submitting it to a lender.
If you have a negative net worth (you owe more than you own), so be it.
Don't try to change the document by eliminating liabilities or over-estimating assets. This statement is a general document that lists things you own and things you owe, but a lender will also want documentation of ownership and liabilities.The expenses should include income taxes and other taxes, mortgage payments or rent payments, insurance payments, legal claims (like alimony payments) and an estimate of other expenses.To begin, start gathering information about assets and liabilities.Step 1: Prepare a list of all assets owned whether they are paid for or not.Enter the amount you would receive by selling the asset for cash.Net worth for an individual is similar to owner's equity for a business.Note that rentals don't show on the personal financial statement, because there is no ownership.If you present this financial statement to a potential lender or investor, be sure to sign and date it in the space provided.The signature is your pledge that the statement is complete and accurate to the best of your knowledge.For example, if you have a home mortgage, the lender may want an appraisal on the home and a statement showing the balance still owed on the mortgage.Finally, be sure to be honest, complete, and accurate when preparing and presenting your personal financial statement.