What does a "statement of affairs" for the bank mean?

[Mommah]

A family member has heard second hand through a business partner that the bank are looking for the above for a joint business loan. They are a minority party in this loan.

What exactly does it mean?
I am not stupid and I can guess what I think it means.
But has anyone actually seen the form and what it consists of??
And how it might play out???

 

[Padraigb]

It is a statement of the assets and liabilities of an enterprise on a particular date, similar to a balance sheet.

 

[Mommah]

Thanks Padraig.
So it is a statement of affairs of the business and not the personal affairs of the people who owe the bank??

As far as I know there is a personal gaurantee involved.

 

[Padraigb]

I used the word "enterprise" because I could not think of a better one. My intention was to convey that it might be either a business or individual.

In the case of a business, a reasonably high standard of completeness is usually expected -- for example, all creditors and debtors should be listed, not just the major ones.

Banks usually do not usually require the same level of precision on individuals; a summary statement of major assets and liabilities is considered sufficient. Strictly speaking, that is not a statement of affairs as an accountant might use the expression, but people do at always use language in its strictest sense.