What is a director's statement of assets and

2 min read

Personal balance sheetAssets vs liabilities

GuaranteeWhen it is asked

Net worthWhat it shows

AccurateMust be honest

What it is

A statement of assets and liabilities — sometimes called a personal net-worth statement — lists what you own (property, savings, investments) and what you owe (mortgage, loans, other guarantees). The difference is your net worth. It gives a lender a picture of your personal financial strength behind a guarantee.

When lenders ask for one

It comes up when you are giving a personal guarantee, especially on larger or secured facilities. The lender is testing whether the guarantee is substantive — a guarantee from someone with little net worth offers thin protection. It sits alongside a personal credit check in the personal-information assessment.

Completing it well

Be accurate — values you cannot support undermine trust, and understating liabilities can amount to misrepresentation. Use realistic market values, include all liabilities, and be ready to evidence significant items. Before committing to any guarantee, weigh the exposure carefully and confirm the company itself can service the debt with the affordability calculator.

Frequently asked questions

Is a statement of assets and liabilities always required?

No — only where a personal guarantee is in play, and usually on larger or secured deals. Small unsecured facilities against a strong company rarely need one.

What if my net worth is modest?

It does not automatically block a loan, but it affects how much weight the lender puts on your guarantee. A strong company can carry a facility even where the guarantor's personal net worth is limited.