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Funding call
Also called verification call, welcome call, confirmation call, VC.
A recorded call the funder places to the owner before releasing money, confirming identity, bank details, the terms of the deal and that nothing has been left out.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
It is short and scripted. Expect confirmation of your identity and role, that you read and signed the agreement, the funding amount and the total to be remitted, the debit amount and frequency, the bank account details, the business address and landlord, and a direct question about whether any other advances, loans or pending applications exist.
The call is recorded and retained. It exists to close the gap between what the funder was told by the broker and what is true, and to create evidence that the merchant understood the terms.
A hesitant or contradictory answer will stop funding. So will a call where the person on the phone does not appear to be the signer.
Where this one catches people
Brokers sometimes coach merchants on how to answer the question about other positions, and it is presented as a technicality. It is not. A false answer on that call is a misrepresentation made to induce funding: an event of default in every agreement, a route through the fraud carve-outs of the personal guaranty to personal liability that survives the entity, and potentially worse. It is also on tape, kept, and produced in litigation. If a broker tells you what to say, that is information about the broker.
Where you will meet this term
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Funding call — common questions
What does funding call mean?
A recorded call the funder places to the owner before releasing money, confirming identity, bank details, the terms of the deal and that nothing has been left out.
Where does funding call catch people out?
Brokers sometimes coach merchants on how to answer the question about other positions, and it is presented as a technicality. It is not. A false answer on that call is a misrepresentation made to induce funding: an event of default in every agreement, a route through the fraud carve-outs of the personal guaranty to personal liability that survives the entity, and potentially worse. It is also on tape, kept, and produced in litigation. If a broker tells you what to say, that is information about the broker.
Is funding call the same as an interest rate?
Funding call is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does funding call apply to?
Merchant Cash Advance, Working Capital, Revenue-Based Financing.
Is there a worked example of funding call?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside funding call?
Due diligence, Event of default, Independent sales organization, Personal guarantee, Stacking.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.