Section 8: Personal Financial Statements

Course Description

This course will: describe the purpose of a personal financial statement; explain why borrowers are asked to personally guarantee a loan; explain the information one expects to find on a personal financial statement; define a guarantor, his/her obligations and the process to assess the strength of a guarantor; explain a third party guarantee and when one is needed; explain how a guarantor is used in structuring a loan; and describe how personal financial statements are used to determine the guarantor’s ability to make interest and principal payments. Analyze personal financial statements to help determine sources of cash that can be used for loan repayment. Evaluate the borrower’s willingness to repay the loan.

120 Minutes