A personal financial statement (PFS) is a one-page snapshot of what you own, what you owe, and the difference, your net worth, plus your income sources and any contingent liabilities. Nearly every commercial lender requires one from anyone with meaningful ownership in the borrowing entity, and SBA loans require it on SBA Form 413. Lenders usually want it dated within the last 60 to 90 days.
Ask any commercial lender for a loan and one of the first documents they will request is a personal financial statement. It is short, it is standard, and it trips up more borrowers than it should, mostly because nobody explains what it is until you are being asked for it on a deadline. Here is the full picture.
A personal financial statement, usually shortened to PFS, is a snapshot of your personal financial position on a single date. It has three core parts. Assets: everything you own, at current market value, cash, bank and retirement accounts, stocks and bonds, real estate, notes owed to you, the cash value of life insurance, vehicles, and other property. Liabilities: everything you owe, credit balances, notes and installment loans, mortgages, unpaid taxes. And the difference between the two, which is your net worth, the number lenders look at first.
A complete PFS also lists your income sources, salary, investment income, real estate income, and discloses contingent liabilities: debts you might owe, such as loans you have guaranteed for someone else or pending legal claims.
Commercial loans are made to entities, but they are backed by people. When you own a meaningful share of the borrowing entity, commonly 20 percent or more, the lender wants to understand your overall financial position: how much cushion stands behind the deal, whether your obligations elsewhere could strain it, and, when a personal guarantee is involved, what that guarantee is actually worth. The PFS answers those questions in one page.
It also does quiet work in your favor. A clean, complete, current PFS signals an organized borrower, and lenders price organization into their confidence. A vague or stale one invites questions that slow the file down.
If you are applying for SBA financing, the PFS is not optional and not freeform: the SBA requires its own version, Form 413, for 7(a) loans, 504 loans, disaster loans, and several other programs. It covers the same ground as a standard PFS, with the SBA's specific layout and certifications. Every owner of 20 percent or more of the business typically completes one, and spouses' information is often required as well.
For non-SBA lenders, banks, bridge lenders, private capital, any clear, complete PFS format is generally accepted. The information matters more than the layout.
Three things, mostly. Freshness: lenders usually want a PFS dated within the last 60 to 90 days, so plan to update it per application rather than reusing last year's. Consistency: the numbers should line up with your tax returns, bank statements, and the schedule of real estate you provide elsewhere in the file; mismatches are the fastest way to generate lender questions. And completeness: leaving out a liability that later surfaces on your credit report damages trust in the whole file.
Keep a current PFS ready before you need it. It is one of the few loan documents you can fully prepare in advance, and having it done turns the document-gathering stage from a scramble into a checkbox. We built a free tool that walks you through building one section by section, with your totals and net worth calculated automatically: the personal financial statement builder. Everything you enter stays in your browser, and you can print or save the finished statement for any lender.
For the rest of what a lender will ask for, see our commercial loan documents checklist. And when your PFS is ready and you want real numbers on a deal, send it with your property details and we will take it from there.
Alan is Managing Partner at BluRidge Funding and has worked in mortgage and real estate finance since 1996, with commercial lending as a principal focus since 2003. He holds an economics degree from BYU and a law degree from the University of Utah, and is a founding board member and former President of the Utah Association of Mortgage Brokers. More about the team.
Send the property, the loan amount, and your timeline. We will tell you whether it looks like something we can help with, usually within one business day.
Submit Deal DetailsNot ready to submit? You can build a one-page deal brief in three minutes first.
Or just call: 801-706-2802