Brokers requiring Proof of Funds?

July 14, 2025

by a searcher from Emory University in Atlanta, GA, USA

Hey y'all, I'm brand new to this entire world and jumping in head first. I've sent out a few requests for information and recently got a response asking for proof of funds + NDA to even start the conversation Have y'all dealt with similar requirements and are there any red flags associated with it? I get they're trying to vet serious buyers, but doesn't it also puts the buyer in a worse position for negotiations?

Reply by a professional
in Boca Raton, FL, USA

Providing proof of funds puts you in a much better position for negotiations - sellers/brokers need to know you can get the deal done. The market is flooded with alleged buyers who have no money and will tie up sellers and then try, usually with zero success, to raise capital. It's a foolish strategy that rarely works in the real-world. Demonstrating you have the proceeds in no way whatsoever impedes your negotiating position - it has the exact opposite impact.

Reply by a searcher
from The University of Arizona in Gilbert, AZ, USA

NDA is always going to show up. The proof of funds is not. In my experience the proof of funds tends to be deals where you need cash, either over sba limits or it wont qualify for sba

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