Why Your SBA Form 413 - your PFS - Is Killing Your Loan Approval S1E10

The Personal Financial Statement (PFS) form is a crucial but often mishandled document that can make or break commercial loan applications, with lenders using it to assess not just financial status but also organization and trustworthiness.

• SBA Form 413 is the preferred standardized Personal Financial Statement
• Accuracy is essential—never round numbers or leave fields blank
• Incomplete forms signal disorganization and undermine credibility
• Every revision causes delays and loses momentum with lenders
• Required documentation includes statements for all assets and liabilities
• How you complete this form reflects how lenders believe you run your business
• Common mistakes include omitting spousal assets and forgetting liabilities
• Even fields with zero values should be completed with "none" or "0"

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Transcript

Intro to Personal Financial Statements

Speaker 1 0:03

Welcome to Capital Stack , the show , where we slice through the jargon , bust the myths and talk real about what it takes to get your business funded without the fluff . I'm Rob Powell , partner and CMO at Cardinal Capital , and today I want to talk about a form . Yes , a form . Not just any form , but the one that stands between you and that six or seven figure commercial loan you've been chasing . It's called the Personal Financial Statement , or PFS , specifically SBA Form 413 . And let me be real with you . Most people fill it out wrong . Now I get it . Forms are not glamorous . There's nothing sexy about them at all . But this one , it's a deal maker or a deal

How Lenders Read Your PFS

Speaker 1 0:46

breaker . This form is the first thing lenders look at when sizing you up . It tells them how you manage money , what kind of debt you're carrying and whether you're a safe bet .

Speaker 1 0:57

At Cardinal Capital , we prefer SBA version form 413 because it's widely accepted and standardized . But here's the kicker it's rarely filled out completely or correctly . We've seen borrowers round their numbers like they're estimating the price of a used lawnmower or something . You've got $5,261.32 in your checking account . Don't write $5,000 . Is $ 5,000 close ? Absolutely , is it accurate ? Nope , and accuracy

Common PFS Mistakes to Avoid

Speaker 1 1:28

is the whole game , because here's what lenders are actually reading when they look at your PFS . Are you organized ? Do you understand your finances ? Do you respect the process ? In other words , how you fill this out is how they assume you run your business .

Speaker 1 1:47

Now we've seen all kinds of issues with the PFS forms . Sections are left blank , like you're hoping they won't notice . Assets rounded to the nearest , maybe Liabilities conveniently forgotten , spousal assets omitted , retirement accounts and insurance values left off entirely , and no documentation attached . Here's the truth . Incomplete equals incorrect . If you skip fields or fail to back up your numbers , you're not just making a mistake , you're undermining your own credibility ,

Your Financial Handshake With Lenders

Speaker 1 2:20

and that credibility , it's currency with a lender . Now let's talk delays . Every time we have to revise your PFS , the deal gets pushed back , the lender slows down , the pitch has to be rebuilt and you lose momentum . And in commercial lending , momentum matters , because while money might not sleep , banks sure do , and if we lose steam , your deal can drift off into no man's land .

Speaker 1 2:48

This form becomes the bottleneck . But more importantly , it's a bellwether . It shows whether you've got your financial house in order and whether you're the type of operator that lenders can trust with serious money . So how do you avoid becoming your own bottleneck . Here's the fix Use actual numbers , no rounding , no close enough . Fill in every field even if it's none , or in a Disclose everything liabilities , assets , shared property , retirement statements , investment reports , insurance documents . Review it like it matters , because it does .

Speaker 1 3:29

This isn't just a bureaucratic form , it's your financial handshake . At Cardinal Capital , we don't throw

Cardinal Capital's Funding Approach

Speaker 1 3:35

you into the paperwork abyss , we walk you through it . We flag mistakes before they hit a lender's desk . We make sure your PFS tells the right story and backs it up . Because here's the big truth the faster you nail this form , the faster we can pitch your deal , and the faster you pitch it right , the better your chances of funding success . So if you're serious about funding , take your PFS seriously , and if you want someone in your corner that treats your success like their mission , let's talk . Head to cardoCapitalnet or shoot me a message . I'm Rob Powell and this has been Capital Stack . Fill it out right , get funded faster . We'll see you next time .