What is Personal Financial Statement (PFS)?
A document detailing an individual guarantor's assets, liabilities, income, and net worth.
Personal Financial Statement (PFS) in commercial lending practice
PFS is required for virtually all commercial loans with personal guarantees. It supports evaluation of guarantor liquidity, contingent liabilities, and overall financial strength as a secondary repayment source. Global cash flow analysis pulls PFS data alongside the guarantor's personal tax return (1040 with Schedule E for K-1 income) and any related-entity returns to build the consolidated cash flow picture.
Related terms
Related concepts in commercial underwriting
Global Cash Flow Analysis
An underwriting approach that consolidates the cash flows of all related entities and guarantors — not just the borrowing entity — to assess total repayment capacity.
Read definitionSchedule K-1
A tax form (Form 1065 K-1, 1120-S K-1, 1041 K-1) that reports a partner's, shareholder's, or beneficiary's share of income, deductions, and credits from a partnership, S-corporation, or trust.
Read definitionFinancial Spreading
The process of extracting financial data from tax returns, financial statements, and other documents and organizing it into a standardized format for credit analysis.
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How Personal Financial Statement (PFS) shows up in AI underwriting
Aloan automates the underwriting analysis where personal financial statement (pfs) matters — spreading, global cash flow, credit memo generation — with source-cited audit trails on every figure. See it run on a real deal in your standardized format.
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