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Funding statement
Also called disbursement statement, settlement statement, closing statement.
The itemization signed at closing showing the gross funding amount, every deduction, every payoff and the net wire: the only document that reconciles what was agreed with what you receive.
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
It is usually one page. Gross funding amount at the top, then a list: origination or program fee, psf or broker fee, documentation and UCC filing charges, any pass-through tax, payoffs to existing funders with each named, and the net amount to be wired.
Keep it. It is the record for disputing a charge that was never discussed, for reconciling what a prior funder was actually paid, and for your accountant, who needs to know which part of the wire was fee and which was payoff.
Despite the similar name it has nothing to do with a UCC-1 financing statement, which is a public lien filing.
Where this one catches people
This is the document that deserves the most careful reading and gets the least, because it appears at the end of a long process, usually on a phone, with the money waiting. Charges that were never mentioned anywhere else surface here for the first time: packaging fees, risk fees, ACH setup charges, doc stamps, broker points deducted at source. Once it is signed and the wire has gone out, the argument becomes much harder to make.
Where you will meet this term
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Funding statement — common questions
What does funding statement mean?
The itemization signed at closing showing the gross funding amount, every deduction, every payoff and the net wire: the only document that reconciles what was agreed with what you receive.
Where does funding statement catch people out?
This is the document that deserves the most careful reading and gets the least, because it appears at the end of a long process, usually on a phone, with the money waiting. Charges that were never mentioned anywhere else surface here for the first time: packaging fees, risk fees, ACH setup charges, doc stamps, broker points deducted at source. Once it is signed and the wire has gone out, the argument becomes much harder to make.
Is funding statement the same as an interest rate?
Funding statement 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 statement apply to?
Merchant Cash Advance, Working Capital, Term Loan, Invoice Financing.
Is there a worked example of funding statement?
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 statement?
Disbursement, Financing statement, Funding amount, Origination fee, Payoff letter.
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.