Proof of Funds

by a searcher from University of Northern Colorado - Kenneth W. Monfort College of Business

10 months ago

How do searchers navigate when brokers require proof of funds to submit an LOI? A lot of searchers are looking for businesses that would be out of reach without outside investor help. There have been brokers who want proof of funds shown before moving forward with the deal.  Most searchers don't have $500K+ in funds to show and most investors want to see a deal when it's already under LOI to make commitments.  Has anybody had success navigating around this?

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33 comments

intermediary from University of Arizona

We brokers have to limit our time (and that of our seller clients) to serious and ready buyers. If you don’t have the cash and can’t provide proof of funds then you are not a buyer. No disrespect meant here only objective truth. If you don’t have commitment from investors who are ready to also provide proof of funds I would not continue the conversation. It shows that you are not prepared so why waste any time.

1 month ago | like reply | 0 likes

professional from The University of Chicago - Booth School of Business

For those of you guys who have submitted proof of funds, what is the minimum amount that brokers expect? I would assume something like ~$500K in one's brokerage account should be ok but do they want more?

4 months ago | like reply | 0 likes

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