Sunday, May 6, 2012

Verification Of Funds Process

In the world of finance, a verification of funds letter is a bank instrument that provides credit enhancement and illustrates that funds are available to carry out the terms of a business venture or other transaction. A verification of funds letter can be used for large scale business deals that require a lot of cash collateral, often utilized by those who need to satisfy designated net worth, liquidity or bond requirements in order to move forward with a business project.

A financial leasing professional can assist you with a leased funds account and help you set your business idea, investment plans or other financial venture in motion. You can use verification of funds to obtain financing for commercial real estate projects, commodities transactions and more. Learn more about the process for verification of funds and determine whether this type of leased funds account can work for you.

Verification of Funds Leasing Process

Leasing of verification of funds involves a simple and straightforward process and typically only takes one to three days to complete:

Contact a reputable financial leasing specialist, describe your needs in detail and submit the required documents, including banking information, to get started.

Your chosen financial leasing specialist will prepare a service agreement, which you will need to review and sign before anything takes place. Make sure that the document reflects your exact needs for this transaction and that you understand the terms completely.

An escrow agreement will prepared, with both you and the provider identifying the requirements of both parties. Once the escrow agreement has been approved and signed by both parties, you will then deposit the leasing fee or security deposit into the designated neutral escrow account.

As soon as the escrow company confirms the deposit, an account will be opened and a verification of funds letter will be issued to you.

You can then verify directly with the bank, whether through verbal verification, tear sheet, bank statement, phone, bank-to-bank or other means. Upon confirmation, the escrow company releases the funds.

Verification of Funds -- Additional Information

In most cases, verification of funds accounts can be set up in terms of 30, 60 or 365 days. Depending on your needs, you may wish to obtain a master account or a sub account. A sub account is linked to a master account and may result in a reduced leasing fee.

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