If you’re trying to get a business loan from a bank or financing from an investor, they may ask you for a personal financial statement.
A personal financial statement is a snapshot of your personal financial position at a specific point in time.
It lists your assets (what you own), your liabilities (what you owe) and your net worth.
To get your net worth, subtract liabilities from assets. Your net worth can be either positive (if you have more assets than liabilities) or negative (if you have more liabilities than assets).
Examples of personal assets include:
- Stocks and bonds
- Real estate
- Retirement accounts
- Personal property such as jewelry or cars
Examples of personal liabilities include:
- Outstanding loans
- Credit card debt
Don’t include business assets or liabilities in your personal financial statement.
When Do You Need a Personal Financial Statement?
When you’re seeking a business loan or other outside