Why Do Funders Ask for My ID, a Voided Check and Proof of Ownership?
Funders ask for these to confirm three things before they wire money: that you are who you say you are, that you own the business, and that the bank account receiving the funds and sending the payments belongs to the business.
Why do funders want your ID?
Your driver's license or passport lets the funder match the person signing the contract to the person guaranteeing it. It also protects you. Identity fraud in business funding is real, and a funder that skips this step is a funder willing to fund someone pretending to be you.
Why a voided check or bank letter?
The funding wire goes into your business account, and the daily or weekly payments come out of it. A voided check, or a bank letter with the account and routing numbers, confirms the account details exactly so the money lands in the right place. It also confirms the account is in the business's name.
What counts as proof of ownership?
This is usually your articles of organization or incorporation, a state filing that lists the owners, or a business license. Sometimes it's an IRS letter showing the EIN assigned to the business. The funder wants to see that you have authority to sign for the business and that the ownership shares match what you told them.
Which other documents get added sometimes?
- A landlord's contact or a lease, for businesses with a physical location.
- A photo of the storefront or a quick video walk through.
- A recent processing statement, if you take cards.
- A payoff letter for any advance being paid off with the new funds.
These aren't hoops for the sake of hoops. Every one of them closes a gap a funder has been burned by before.
What if the details don't match?
Most delays at this stage come from small mismatches. The business name on the bank account is slightly different from the name on the state filing. The address on your ID is an old one. The EIN letter lists a former partner. None of these are deal breakers, but each one needs a quick explanation and sometimes an updated document. If you know about a mismatch, tell us when you send the papers so we can explain it to the funder up front. And if you've changed your business name or structure recently, send both the old and new filings. A funder can follow the history when the documents connect the dots.
How should you send the documents?
Scan or photograph each document flat, in good light, with every edge showing. Name the files plainly, like ID, voided check and articles. It sounds small, and it saves a round of back and forth with the funder's closing team.
How can Afterfirst help with this?
Gather your ID, a voided check and one ownership document before you call 877-FUND-654. Having them ready usually saves a full day at the contract stage. We'll tell you if a particular funder wants anything extra so there are no surprises.
What else do owners ask about this?
- Why would a funder call my landlord or visit my business?
- Can I apply for a merchant cash advance from my phone?
- Can I get an MCA quote before I send bank statements?
More short answers on this topic are on the applying FAQ, and the funder fit checker runs the numbers for your own file.
Have a question we didn't answer?
Ask us on the call. 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.