Next Steps when a Seller asks for Proof of Funds

April 01, 2025

by a searcher from University of Texas at Austin in New York, NY, USA

Hey folks,

I’ve had a couple of exploratory calls with a Seller of a potentially viable business which I have sourced off market and I had a couple of questions.

So as a next step, my business partner and I asked for their CIM but before they go about creating the CIM, they wanted to see a proof of funds from us.

Since we’re both going in as###-###-#### partners, and bringing in SBA support, are the following documents enough to provide as a total package back over to the Seller?

Proof of funds from my bank account & brokerage accounts
Proof of funds from my business partners’ bank account and brokerage accounts
SBA Pre-approval letter

Am I missing any further documentation? Would they basically need to see as a total package, is there enough funds to cover the total price of the business? They didn’t mention the price of the business on the call, but we have a ball-park, high level estimate, so should we clarify that in an email as well?

Reply by a searcher
from New York University in New York, NY, USA

Hi Aravindh, In cases where I have been asked the same from off-market deals I've sourced, I typically reply that I do not have proof of funds because I don't yet know how much I'd need. Once we dial in a price, my job is to put the financing together, which can include everything from loans to outside investors. So far, it's worked every time, especially because sellers without a CIM don't fully understand the process or what they should price for, so they're not actually prepared anyway. You'll still have a lot of work to do even after they made you jump through this 1st hoop. (This has been my experience in my niche and isn't legal, financial or deal advice.)

Reply by a lender
in Falmouth, MA, USA

^redacted‌ we provide letters of support for clients after analyzing their personal financial statements and conducting an interview to better understand you and your fit within the industry or business. With complete deal details, including the financial package, we collaborate with lending partners to issue term sheets. These strategies help our clients stay competitive. Contact: redacted

+12 more replies.

Join the discussion