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Funding date
Also called closing date, disbursement date, effective date.
The day the funder releases the money, which normally starts the clock for the first debit and for any early payoff window.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
For wires, the funding date is the day the wire is sent, subject to the bank's cutoff. For ACH credits it is the day the entry is originated, with funds usually available the next business day. In equipment finance, funding often waits on a delivery and acceptance certificate signed by the customer, so the date is set by the vendor's logistics rather than by the credit approval.
Collection typically starts the next business day, or after a short stated delay. That first debit can arrive before the wire has cleared into an account the business can draw on, which is a cash flow detail worth checking rather than a contractual problem.
On interest-bearing facilities the funding date starts accrual and anchors the payment schedule.
Where this one catches people
Early payoff discount tiers and any stated windows count from the funding date, not from the date you signed and not from the date the money became usable. A wire sent Friday afternoon that posts Monday quietly consumes three days of a thirty-day window. If a tier matters to your plan, get the funder to confirm in writing which date it runs from.
Where you will meet this term
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Funding date — common questions
What does funding date mean?
The day the funder releases the money, which normally starts the clock for the first debit and for any early payoff window.
Where does funding date catch people out?
Early payoff discount tiers and any stated windows count from the funding date, not from the date you signed and not from the date the money became usable. A wire sent Friday afternoon that posts Monday quietly consumes three days of a thirty-day window. If a tier matters to your plan, get the funder to confirm in writing which date it runs from.
Is funding date the same as an interest rate?
Funding date is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does funding date apply to?
Merchant Cash Advance, Working Capital, Term Loan, Equipment Financing.
Is there a worked example of funding date?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside funding date?
Daily debit, Delivery and Acceptance, Disbursement, Early payoff discount, Funding amount.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.