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Stips
Also called stipulations, closing conditions, conditions of approval.
The documents and conditions an underwriter requires before an approval turns into funded money — the list that decides whether a deal closes today or next week.
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
A typical bank-statement product asks for the last three to six months of statements, a government photo ID, a voided check, proof of ownership, and landlord or mortgage details. Larger deals add tax returns, interim financials, a debt schedule, accounts receivable ageing, certificates of insurance, and the entity's formation documents.
Some stips are pre-approval, meaning underwriting will not decide without them. Others are pre-funding, meaning the approval stands but nothing moves until they arrive. Knowing which is which is most of what separates a competent broker from a fast one, because chasing a pre-funding stip after the merchant has already been told they are approved is where deals die and where relationships sour.
Conditional stips appear on tighter files: a bank verification login, a landlord subordination or waiver, a site inspection, or a subordination from an existing lienholder. That last one takes days or weeks and depends on a third party who has no incentive to hurry.
Where this one catches people
"Approved" from a broker frequently means "approved subject to stips", and the merchant hears an unconditional yes. The gap matters because merchants make commitments on it — ordering inventory, signing a lease, telling a supplier the money is coming. Ask which stips are outstanding and which of them require a third party, because those are the ones nobody controls.
Where you will meet this term
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Stips — common questions
What does stips mean?
The documents and conditions an underwriter requires before an approval turns into funded money — the list that decides whether a deal closes today or next week.
Where does stips catch people out?
"Approved" from a broker frequently means "approved subject to stips", and the merchant hears an unconditional yes. The gap matters because merchants make commitments on it — ordering inventory, signing a lease, telling a supplier the money is coming. Ask which stips are outstanding and which of them require a third party, because those are the ones nobody controls.
Is stips the same as an interest rate?
Stips 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 stips apply to?
Merchant Cash Advance, Working Capital, Term Loan, Business Line of Credit.
Is there a worked example of stips?
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 stips?
Bank statements, Same-day funding, Submission, Subordination agreement, Underwriting.
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.