How is an electronic signature validated?

An electronic signature is valid when intent, consent, attribution, and record retention are demonstrable per ESIGN (15 U.S.C. §7001) and relevant UETA provisions. Use audit trails, signer authentication, and retained records to meet these criteria for enforceability.

When is notarization or witnesses required?

Notarization or witnesses are required when state law or the receiving party mandates them, such as for deeds, certain powers of attorney, or as a condition of probate. Check state notary rules and RON availability before relying solely on e-signature.

Which supporting documents should I attach?

Include bank statements, recent pay stubs, accounts receivable ledgers, loan statements, promissory notes, appraisals, and creditor statements that substantiate asset and liability entries. Missing documentation is a common cause of verification delays or rejection by lenders and courts.

How to avoid common calculation errors?

Double-check totals, reconcile line items to source documents, use consistent valuation dates, and apply conservative estimates for illiquid assets. Have a second reviewer or accountant validate calculations to reduce risk of material misstatement and downstream inquiries.

Can the document trigger tax reporting?

The Financial Statement itself does not create tax filings, but figures disclosed may prompt requests for tax returns or IRS verification. Maintain tax records per IRC §6501 and be prepared to provide returns or W-9/TIN documentation if payers or authorities request confirmation.

Who can sign this statement?

Authorized signers include the individual named, corporate officers with delegated authority, trustees, or legally appointed representatives. Ensure the signer’s authority is documented in corporate records, power of attorney, or trust instruments to avoid challenges to the statement’s validity.

Electronic Signature
Templates
Finance
Financial Statement of Solvency

Financial Statement of Solvency

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL STATEMENT OF SOLVENCY

This Financial Statement of Solvency is provided by the undersigned to declare the financial condition of the Entity identified below as of the date indicated. The undersigned acknowledges that this statement is provided for the purpose of establishing solvency, obtaining credit, or supporting a financial transaction, and certifies the accuracy of the representations and disclosures contained herein.

IDENTIFICATION

Entity/Individual Name: Business / Trade Name (if any): Entity Type (check applicable):

Individual Corporation LLC Partnership Trustee Other:

Address:

Tax ID / SSN:

Contact Phone / Email:

Statement date as of:

ASSETS

Provide current realizable values. Include attached schedules where additional space is required.

Description	Amount (USD)
Cash on hand and in banks
Marketable securities (current market value)
Accounts receivable (net)
Inventory (market value)
Real property (market value) — list addresses on attached schedule
Machinery, equipment, furniture (net realizable)
Vehicles (market value)
Investments in affiliates / subsidiaries
Other assets (describe)
Total Assets

LIABILITIES

Description	Amount (USD)
Accounts payable
Short-term loans / lines of credit
Current portion of long-term debt
Long-term debt (net)
Mortgages payable
Taxes payable
Accrued expenses
Other liabilities (describe)
Total Liabilities

NET WORTH / EQUITY

Net Worth (Total Assets minus Total Liabilities):

CONTINGENT LIABILITIES / OBLIGATIONS

Material contingencies, guarantees, pending litigation, letters of credit, and similar obligations:

SECURITY, LIENS, AND PLEDGES

Identify all assets subject to security interests, liens, pledges, or other encumbrances:

SUPPORTING DOCUMENTATION

Please indicate which documents are attached and available for review. Originals or certified copies may be required upon request.

Bank statements (most recent 3 months) Federal / State tax returns (most recent 2 years) Audited financial statements

Real estate or asset appraisals Promissory notes / loan agreements Other:

PREPARER / AUTHORIZED REPRESENTATIVE (if different)

Prepared by (name):

Firm / Company:

Contact Phone / Email:

CERTIFICATION AND AUTHORIZATION

I certify that the information contained in this Financial Statement of Solvency, including all schedules and attachments, is true, complete, and presented in good faith. I understand that the recipient will rely on this statement in evaluating the Entity's financial condition and its capacity to meet obligations. I authorize the recipient to verify any information contained herein with third parties, and to obtain credit reports, bank confirmations, and other verifications as necessary. I acknowledge that knowingly making a false statement or material omission in this statement may subject the undersigned to civil or criminal penalties.

The undersigned agrees to promptly notify the recipient in writing of any material change in financial condition that would affect solvency or the accuracy of this statement.

Declarant Name:

Title / Capacity:

By:

Date:

Contact Phone:

What the Financial Statement of Solvency is and when it’s used

Financial Statement of Solvency is a formal written declaration that summarizes an individual’s or entity’s assets, liabilities, and net worth at a specific date, and affirms that obligations can be met when due. Organizations use it to demonstrate liquidity and solvency for lenders, courts, landlords, trustees, or counterparties during transactions such as loan approvals, mergers, probate, or lease negotiations. The document typically includes a balance of readily available cash, receivables, short and long-term liabilities, and a signature block where the preparer certifies accuracy under penalty of perjury or applicable statutory consequences.

Why a clear Financial Statement of Solvency matters

A Financial Statement of Solvency clarifies current financial position for third parties, reduces underwriting friction, and supports legal or administrative proceedings. It helps establish trustworthiness in credit, leasing, or court contexts while providing a concise, verifiable snapshot of assets and liabilities.

Common users and requesters of solvency statements

Typical users include borrowers, corporate officers, trustees, and legal representatives who must document solvency for lenders, counterparties, or courts.

Individual borrowers certifying net worth for mortgage, personal loan, or lease approvals.
Corporate officers providing solvency statements for mergers, vendor credit, or financing arrangements.
Trustees or executors submitting financial position summaries during probate or trust administration.

Choose the version and supporting evidence that match the requesting party’s requirements and applicable law.

Step-by-step: complete a Financial Statement of Solvency

Follow these steps to complete a Financial Statement of Solvency accurately and in compliance with common requirements.

01

Prepare Documents: Gather bank statements, pay stubs, and debt schedules to support figures.
02

Complete Assets: List cash, investments, receivables, and property with current values.
03

Detail Liabilities: Record short- and long-term debts, loans, and contingent obligations.
04

Sign and Date: Signer certifies accuracy and enters execution date in MM/DD/YYYY.

Security and compliance features to consider

Encryption (in transit): TLS 1.2 and TLS 1.3 protocols

Encryption (at rest): AES-256 encryption for stored data

Certifications: SOC 2 Type II, ISO 27001, PCI DSS

Privacy Frameworks: GDPR, CCPA compliance frameworks supported

Healthcare BAA: HIPAA compliant with BAA available

eSignature Laws: ESIGN and UETA compliance

Key legal and financial risks from errors

Tax Penalties: IRC §6721 penalties for filing errors

Intentional Disregard: $660+ per form, no cap

I-9 Violations: $281–$2,789 per violation

Notarization Failure: May invalidate statement in some jurisdictions

Perjury Risk: False certification may trigger criminal liability

Creditor Actions: Collection, lien, or enforcement follow-up possible

Common preparation pitfalls to avoid

Incomplete supporting documents cause delays: missing bank statements, unverified pay stubs, or absent loan statements commonly trigger verification requests and slow approvals.
Using different valuation dates across assets and liabilities creates reconciliation issues and can produce materially misleading net worth calculations for reviewers.
Handwritten corrections without initials or dated amendments often lead to authentication problems and may require notarization or re-execution.
Failure to disclose contingent liabilities, guarantees, or pending litigation skews solvency and can result in creditor challenges or court scrutiny.

How eSubmission and signing typically flow

Typical eSubmission workflow for a Financial Statement of Solvency involves document preparation, authentication, signature capture, and record retention.

Upload Document: Convert to PDF/A or DOCX and upload
Place Fields: Insert signature, date, and supporting attachment fields
Authenticate Signer: Email, SMS code, or KBA options; choose per risk
Archive Record: Store signed PDF with audit trail and retention metadata

Suggested digital workflow configuration

Configure a digital workflow to collect signatures, attach evidence, and route the Financial Statement of Solvency for approval.

Field	Configuration
Signer Authentication	Email or SMS code; escalate to KBA for high-risk
Attachment Requirements	Mandate PDF bank statements and loan schedules
Approval Routing	Two-step approval: preparer then reviewer
Retention Settings	Set retention metadata and export to secure storage

eSignature vendor comparison for executing and storing the Financial Statement of Solvency

Comparing common eSignature vendors on price and key features relevant to Financial Statement of Solvency eSubmission and notarization workflows.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Available on premium plans	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA)	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Example scenarios illustrating real-world use

Two brief case sketches show how a Financial Statement of Solvency is used by different organizations and why supporting evidence mattered.

Mortgage Approval

A borrower provided a timely Financial Statement of Solvency with bank statements and pay stubs

lender requested CPA compilation for large withdrawals
the verified statement expedited underwriting and avoided a manual documentation hold that would have delayed closing by two weeks.

Probate Administration

An executor submitted the statement to identify estate liquidity

beneficiaries questioned a real estate valuation
attaching an appraisal and escrow statements resolved disputes and reduced the need for court-ordered accounting.

FAQs and troubleshooting for the Financial Statement of Solvency

Answers to common questions about validity, authentication, required attachments, and how to handle notarization or state-specific rules.

Need help? Contact support

How is an electronic signature validated?
An electronic signature is valid when intent, consent, attribution, and record retention are demonstrable per ESIGN (15 U.S.C. §7001) and relevant UETA provisions. Use audit trails, signer authentication, and retained records to meet these criteria for enforceability.
When is notarization or witnesses required?
Notarization or witnesses are required when state law or the receiving party mandates them, such as for deeds, certain powers of attorney, or as a condition of probate. Check state notary rules and RON availability before relying solely on e-signature.
Which supporting documents should I attach?
Include bank statements, recent pay stubs, accounts receivable ledgers, loan statements, promissory notes, appraisals, and creditor statements that substantiate asset and liability entries. Missing documentation is a common cause of verification delays or rejection by lenders and courts.
How to avoid common calculation errors?
Double-check totals, reconcile line items to source documents, use consistent valuation dates, and apply conservative estimates for illiquid assets. Have a second reviewer or accountant validate calculations to reduce risk of material misstatement and downstream inquiries.
Can the document trigger tax reporting?
The Financial Statement itself does not create tax filings, but figures disclosed may prompt requests for tax returns or IRS verification. Maintain tax records per IRC §6501 and be prepared to provide returns or W-9/TIN documentation if payers or authorities request confirmation.
Who can sign this statement?
Authorized signers include the individual named, corporate officers with delegated authority, trustees, or legally appointed representatives. Ensure the signer’s authority is documented in corporate records, power of attorney, or trust instruments to avoid challenges to the statement’s validity.

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