Receiving Funds: Timeline and Process

Once your loan or line of credit has been approved and you’ve completed all necessary steps—such as signing the agreement and participating in the verbal verification call—the final step is receiving the funds. At FundLocal, we prioritize getting the funds to your business quickly and securely, so you can start using the capital right away to manage expenses, cover operational costs, or invest in growth opportunities.

Here’s what you can expect regarding the timeline and process of receiving your funds.

Once all the formalities are completed, most businesses will receive their funds within one business day. However, the exact timing can depend on a few factors, including your bank’s processing times and the specific steps in the loan process.

Typical Timeline for Receiving Funds:

1. Same Day or Next Business Day: In most cases, funds are transferred on the same day or within one business day after the verbal verification call is completed.

2. Bank Processing Times: Depending on your bank’s policies, the funds may be available in your account by the end of the day or may take up to the next business day.

Here’s a breakdown of the process for receiving your funds after your loan or line of credit is approved:

Step 1: Complete the Verbal Verification Call

After signing your loan agreement, the next step is the verbal verification call, which confirms your identity and ensures you fully understand the terms of the funding agreement. This is a quick process, typically lasting about 5-10 minutes.

• When It Happens: This call usually takes place immediately after signing the loan agreement or shortly thereafter.

• Why It’s Important: This step is necessary to finalize the approval process and verify the accuracy of your loan details.

Step 2: Fund Disbursement Authorization

Once the verbal verification call is complete, FundLocal will authorize the disbursement of funds to your business account.

• Authorization Process: Our team will issue the transfer of funds based on the agreed loan amount, and you will receive confirmation of the disbursement.

• Notification: You will receive an email or a notification once the funds have been processed and sent to your business checking account.

Step 3: Funds Transferred to Your Business Account

The funds will be transferred to the business checking account that you provided during the application process. Typically, you can expect the funds to arrive quickly, but bank processing times may vary.

• Fast Transfers: In most cases, funds will be available in your account within one business day of completing the verbal verification call.

• Bank Processing Times: Depending on your bank, the timing may vary slightly. Some banks process transactions immediately, while others may take up to the end of the next business day.

While FundLocal works to ensure that funds are transferred as quickly as possible, there are some factors that can influence the exact timing:

1. Bank Processing Times

• Varies by Bank: Each bank processes transfers at different speeds. Some banks process transfers within a few hours, while others may take a full business day.

• ACH Transfers: FundLocal typically uses ACH transfers, which are efficient but may be subject to your bank’s internal processing schedule.

2. Time of Day

• Cutoff Times: If your loan is finalized late in the day or after your bank’s cutoff time for ACH transfers, it may be processed the next morning.

• Weekends and Holidays: If your loan is approved late on a Friday or over the weekend, the funds will likely be transferred the next business day.

3. Completeness of Information

• Accurate Account Information: Ensuring that your bank account details are accurate and up to date is essential for a smooth transfer. Double-check that the business checking account you provided during the application process is correct.

• Delays in Verbal Verification: If the verbal verification call is delayed for any reason, it may push back the fund disbursement process. Completing the call promptly helps ensure quick access to your funds.

Once the funds have been deposited into your business checking account, you can begin using the money immediately to cover your business needs. Here are a few steps to take after receiving the funds:

1. Confirm the Transfer

• Check Your Bank Account: After receiving the notification that the funds have been transferred, log in to your business bank account to confirm the deposit. Ensure that the amount matches the approved loan amount.

2. Use the Funds for Business Expenses

• Operational Costs: Use the funds to cover everyday business expenses such as payroll, rent, utilities, and inventory purchases.

• Growth Investments: You can also use the funds for strategic investments like purchasing new equipment, expanding your business, or launching marketing initiatives.

• Cash Flow Management: Many businesses use loans or lines of credit to bridge gaps in cash flow, ensuring smooth operations during slower periods.

3. Keep Track of Repayments

• Review Your Repayment Schedule: Now that the funds have been disbursed, it’s essential to review the repayment schedule outlined in your loan agreement. Mark your calendar for due dates to ensure timely payments and avoid late fees.

• Plan for Repayments: Make sure your business cash flow can support the regular repayments and consider setting up automated payments to make the process easier.

4. Monitor Your Cash Flow

• Track Expenses: It’s a good idea to keep detailed records of how the funds are used, whether for operational costs, debt consolidation, or expansion. This helps ensure that the loan is utilized efficiently and you remain on track for repayment.

• Adjust for Growth: If you’re using the loan for growth initiatives, monitor the impact on your business’s revenue to ensure a return on your investment.

1. How Will I Be Notified When the Funds Are Transferred?

• You will receive an email or notification from FundLocal confirming that the funds have been processed and transferred to your business account. You can also check your bank account directly to verify the deposit.

2. Can I Use the Funds Immediately?

• Yes, once the funds are deposited into your business checking account, you can use them immediately for any business-related expenses.

3. What Should I Do if the Funds Haven’t Arrived?

• If you don’t see the funds in your account after one business day, it’s a good idea to contact your bank to inquire about processing times. If there’s still a delay, reach out to FundLocal’s support team for assistance.

4. Are There Any Fees Associated with Receiving the Funds?

• Any fees associated with your loan or line of credit, such as origination fees or processing fees, will be outlined in the loan agreement. These fees are typically deducted from the total loan amount before disbursement, so the final amount deposited may reflect these deductions.

5. Can I Track the Fund Transfer Process?

• While FundLocal does not provide real-time tracking of the transfer, you will be notified when the funds have been sent. If you experience any issues or delays, feel free to contact FundLocal support for updates.

If you have any questions about the fund disbursement process, the timeline for receiving your funds, or managing your repayments after the loan is disbursed, the FundLocal support team is here to assist. Our goal is to ensure that you receive your funding quickly and have the tools you need to manage it effectively.

Feel free to reach out to our support team for personalized help or guidance at any stage of the funding process!