Glossary
What is Funding?
Funding is the point at which the lender actually sends the loan proceeds to you or, in some cases, directly to a vendor or seller. It follows approval and the signing of final loan documents, and any remaining conditions must be satisfied first. The amount you receive may be less than the approved amount if fees are deducted at funding. Timelines from approval to funding range from a day for some online products to weeks for SBA and real estate loans.
Example
After signing the loan agreement, the business receives the funds by wire transfer the next business day.
Related terms
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