Net worth is the amount by which assets exceed the liabilities. In simple terms, net worth is the difference between what you own and what you owe. If your assets exceed your liabilities, you have a positive net worth. Conversely, if your liabilities are greater than your assets, you have a negative net worth. All certifications including 15CA, 15CB certificates are required to be made properly.
Net worth Certificate is an initiative set up by the federal deposit insurance corporation (FDIC) to save failing banks and thrifts that had to pay out more in interest to depositors than their gains from long-term investments.
The initiative allowed banks and thrifts who were failing in the new competitive and deregulated system to apply for financial assistance to settle the problems. Net worth certificate serves a very important purpose when it comes to VISA Application, Franchisee Application or Bank Loan Application.
Reasons to obtain Net worth Certificates
Whenever you apply for a VISA, net worth certificate serve an important purpose of determining the net worth of the individual applying for VISA or net worth of his company. Net worth Certificate is an important proof that the person or his company is in good financial position and will be able to live in the other country. Net worth Certificate for VISA purpose provides a reflection of the financial net worth of the Company. For this purpose Net-worth Certificate for Individual will solve the problem.
Once you plan to open a franchisee and have obtained good money for the same, it is net worth certificate which is to be shown and which determines the financial position of the individual who is asking to become a franchisee, in this case a franchisor asks for the net worth certificate of the individual. In the further stages, it is also needed to determine the financial net worth of the franchisee.
Bank Loan Application
At the time one files a loan application; net worth certificate is required to determine the financial position of the loan applicant. Before providing you loan bank looks for your financial history. This is done to make sure that are in a good position to take that loan. Hence a net worth certificate is required in case you apply for a loan. For Example if you are doing a partnership business and want to take loan for the same, then net-worth certificate for partnership firm is required to solve the purpose.