Personal Financial Statement

Thinking about purchasing a business with SBA financing. Let’s start with your Personal financial statement (SBA form 413) As a BDO I work with many entrepreneurs looking to acquire existing businesses using SBA financing. One of the first documents we focus on is the Personal Financial Statement form. You may be wondering why is this so important? When looking to obtain SBA financing your personal financial picture matters just as much as the numbers of the business you are buying or starting up. Here is why the PFS is critical: It gives us as the lender a clear snapshot of your financial position telling us your assets, liabilities, net worth, and liquidity For acquisitions or start ups you will likely have to inject at least 10% equity. The PFS will show how you will meet that requirement and whether you’ll maintain adequate post-closing liquidity. Most importantly, it tells us whether you are overleveraging yourself based on the size loan you are requesting. Stretching yourself too far financially it could jeopardize both the loan and the long-term success of the business. When completing the form treat It like your financial resume because that’s what it is, be accurate, and thorough. We don’t just look at what you own, we also look at how much risk you are taking on. Need help completing the form or want to further understand how lenders interpret it? I’m happy to walk you through it.