Why Acquisition Lenders Ask for Credit Reports and Personal Financial Statements
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TL;DR: A credit report shows credit history; a personal financial statement summarizes assets and liabilities at a stated date. Acquisition lenders use these alongside the target’s financial information and proposed terms. Neither document, nor a credit score alone, establishes that a buyer or deal will be approved. FTC explanation of credit reports.
Research date: October 6, 2026. First published February 26, 2025.
What does each document answer?
| Document | Main question | Important limitation |
|---|---|---|
| Credit report | What does the recorded borrowing and payment history show? | It may contain errors and does not show the target business’s repayment capacity |
| Personal financial statement | What does the individual own and owe on the statement date? | Self-reported figures need supporting evidence; net worth is not available closing cash |
| Account and source-of-funds records | Where will the contribution come from and when can it be used? | A balance does not establish that a proposed source satisfies program and lender conditions |
| Target financial statements and debt schedule | What earnings and obligations will support the acquisition debt? | The lender still reviews adjustments, proposed borrowing and transaction risks |
The FTC describes a credit report as a record of personal credit history and explains how to check it for errors. The SBA 7(a) overview separately requires creditworthiness and repayment ability. These are related questions, not interchangeable documents.
Do I have to buy a premium Experian report?
Do not buy a subscription solely because an old checklist names one. Confirm the required bureau, report format, date and authorization process with the lender or advisor handling the file. A lender may obtain its own report; a consumer-supplied report is not necessarily a substitute for that process.
For your own review, the FTC identifies AnnualCreditReport.com as the authorized place to obtain free reports from the nationwide bureaus. Reviewing your report can help identify inaccuracies before applying. It does not guarantee a particular score, rate or approval.
The former version of this article described a premium Experian product as a prerequisite to any conversation. That was too broad. Duneland’s initial website enquiry accepts a transaction summary and contact details, not a credit report.
What should a personal financial statement include?
Organize assets and liabilities using the required form and valuation basis. Distinguish liquid cash from property, retirement accounts, pledged investments and interests in other businesses. Include debts and other commitments so the statement does not overstate funds available for an acquisition.
Use the personal financial statement resource for the official SBA Form 413 and a separate Excel preparation worksheet. A conventional or private lender may require its own form. Preserve supporting records and update material changes as the transaction progresses.
Which statement date matters for SBA financing?
The current SOP contains more than one timing reference:
- Section A, Chapter 5, A: personal financial statements from individual guarantors, except supplemental guarantors, must be dated within 90 days of loan approval.
- Appendix 20, A, 7(a) submission file: statements for owners of 20% or more and proposed guarantors, except supplemental guarantors, must be signed and dated within 90 days of submission to SBA. The provision specifies spouse/minor-child assets and permits Form 413 or an equivalent lender form.
The form’s own program instructions also need to be considered. Confirm the applicable submission and approval requirements with the lender rather than treating one date as sufficient for every stage.
How should sensitive records be shared?
Keep credit reports, account numbers, Social Security numbers and completed financial statements out of the public website enquiry. First agree the recipient, requested documents and private exchange method with Duneland. This article does not represent that a specific data-room platform has already been established for your transaction.
Consumer report information also has legal restrictions. The FTC’s Fair Credit Reporting Act overview explains that it may only be provided for a purpose specified in the Act. A general enquiry or anonymous public profile is not a reason to publish credit information.
What can Duneland assess before the documents are ready?
A short summary can establish the question: buyer fit, funding gap, debt capacity or proposed terms. For a fuller financing review, Duneland and the lender identify the evidence needed. Duneland does not issue a credit approval. Brokers speak to Duneland, and personal buyer financial records are not displayed in the public directory.
See the acquisition document checklist or start with a financing review.
Sources
- FTC: Free credit reports — report contents, error checks and authorized access.
- FTC: Fair Credit Reporting Act — permissible-purpose context.
- SBA Form 413 — official personal financial statement.
- SBA SOP 50 10 8.1 technical policy updates — Section A, Chapter 5, A and Appendix 20, A; scope and timing of personal financial statements.