Glossary · underwriting

Verification of deposit VOD

Also called VOD, bank verification, bank login verification, account verification.

Confirmation of a business's bank activity taken from the bank directly rather than from documents the applicant supplied — by read-only data connection, by a form completed by the bank, or by a call.

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What it means

Three methods are in use. A data aggregator connection, where the applicant provides online banking credentials or authorises access through the bank's own consent flow and the funder receives read-only transaction data. A written verification form sent to the bank and returned by an officer. And a verbal verification call to the branch, largely displaced by the first two.

The purpose is to defeat document fraud. Altered PDF statements are common enough that most funders will not fund a material amount on submitted documents alone, and a data connection eliminates the possibility outright. It also gives the funder current data rather than a month-old statement, which matters when the decision is being made today.

Some funders retain the connection after funding and monitor the account through the life of the deal. Whether they may, and for how long, is set by the authorisation the applicant granted, which is usually in the application rather than the funding agreement.

Where this one catches people

Granting read-only access shows the funder everything, not only the deposits. Every other funder's daily debit is visible, itemised and dated, which is exactly how undisclosed positions get found and how a stacked file gets declined or repriced mid-process. Merchants who submit selected statements and then agree to bank verification are usually surprised by what the second step reveals about the first. Separately, check what the authorisation permits after funding — continued monitoring is common and rarely discussed.

Where you will meet this term

Merchant Cash Advance Working Capital Term Loan Business Line of Credit

Read next

Average daily balance (ADB)The mean end-of-day balance in the operating account over a period, used as the main test of whether a busine… Bank statementsThe months of business checking statements that most non-bank underwriting is actually built on — the primary… Same-day fundingMoney wired to the business on the day the contract is signed, available on a narrow set of products and gate… StackingTaking an additional advance or loan while an existing one is outstanding, so two or more fixed debits run ag… StipsThe documents and conditions an underwriter requires before an approval turns into funded money — the list th… UnderwritingThe lender's assessment of whether and on what terms to fund, which in the bank-statement market is driven fa…

Verification of deposit — common questions

What does verification of deposit mean?

Confirmation of a business's bank activity taken from the bank directly rather than from documents the applicant supplied — by read-only data connection, by a form completed by the bank, or by a call.

Where does verification of deposit catch people out?

Granting read-only access shows the funder everything, not only the deposits. Every other funder's daily debit is visible, itemised and dated, which is exactly how undisclosed positions get found and how a stacked file gets declined or repriced mid-process. Merchants who submit selected statements and then agree to bank verification are usually surprised by what the second step reveals about the first. Separately, check what the authorisation permits after funding — continued monitoring is common and rarely discussed.

Is verification of deposit the same as an interest rate?

Verification of deposit 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 verification of deposit apply to?

Merchant Cash Advance, Working Capital, Term Loan, Business Line of Credit.

Is there a worked example of verification of deposit?

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 verification of deposit?

Average daily balance, Bank statements, Same-day funding, Stacking, Stips.

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.