Glossary

Bank verification

Confirming the business bank account before funding.

The step where a provider confirms your business bank account exists, belongs to the business, and is the account for funding and debits. Done by instant read-only connection, a voided check, a bank letter, or a small test deposit. It is a stipulation, not a judgment, and a common source of delay when documents are missing.

How it appears in a contract

Part of the ACH authorization and the closing checklist ("stips").

Worked example

A file approved at 10 a.m. funds the next day instead of the same day because the voided check arrived after the cut-off.

Illustrative figures on stated assumptions; not quotes.

What to ask

• Which verification method do you accept?
• Does the read-only connection persist after funding?
• What is the funding cut-off time?

Related terms

Bank statement underwriting · ACH remittance · all terms