Stipulations: Meaning in a Merchant Cash Advance
Stipulations, usually called stips, are the documents or conditions a funder requires before it will fund an approved file. Common stips include recent bank statements, a voided check, a photo ID, proof of ownership and a verification call.
What does stipulations mean?
An approval is rarely final. It comes with a list: send this, confirm that. Once every stip is cleared, the funder sends the contract or releases the money. Some stips are routine for every file. Others come from something the underwriter noticed, like a large one-time deposit or a tax lien, and ask you to explain or document it.
Why does stipulations matter to your business?
Stips are where most delays happen. A file approved in the morning can still wait days if a statement is missing or the landlord doesn't answer a verification call. Getting stips back fast, complete and legible is often the difference between funding this week and funding next week.
Which stips are common?
- Month-to-date bank activity, to see the current balance and debits.
- A voided check or bank letter for the funding account.
- A driver's license or other photo ID for each owner.
- Proof of ownership, like articles of organization.
- A payoff letter for any advance being paid off.
- Proof of a tax payment plan, if a lien is on file.
How do you clear them faster?
Keep a folder with your ID, registration papers and a voided check ready ahead of time. Send clear PDFs, not phone photos at an angle.
Where will you see it?
In the approval email or offer summary, usually as a checklist. From your broker, who collects them and sends them to the funder. In the funder's portal, if it has one.
Which terms are related to stipulations?
The full list is in the glossary. Owners ask about this in Do funders look at profit or revenue for an MCA?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.