Adjusting a Business Owner’s Net Worth

Understanding a business owner’s personal financial situation is a critical skill in managing risk for commercial lenders. In this practice lab, we’ll step into the shoes of an SME lender and seek to holistically understand a business owner’s personal finances (within the context of a prospective borrowing request). We’ll dig through the company’s financial results and the owner's personal net worth statement to try and identify potential risks. Next, we’ll work through an adjustment template, line-by-line, in order to arrive at a responsible set of insights and a prudent set of adjustments.