Stipulations (Stips)
Stipulations (commonly called 'stips') are the documents and information a funder requires from the merchant before final approval and funding — typically including bank statements, processing statements, voided check, business license, government ID, and tax returns.
Why This Matters
Stips collection is where many approved deals go to die. The funder approves, the merchant has 24-72 hours to send required documents, and 20-40% of approved deals fall out at this stage from merchant friction or paperwork delays. Top-performing MCA reps work the stips process actively: walking merchants through what's needed, providing templates, escalating to bank statement aggregator tools (Plaid, MX) when manual upload stalls. Stips workflow optimization is one of the highest-leverage operational improvements available to MCA shops.
Frequently Asked Questions
Frequently Asked Questions
What standard MCA stipulations do funders require?
3-6 months of bank statements (sometimes 12 for larger deals), 3-6 months of processing statements (if accepts cards), voided check or banking verification, government-issued ID, business license or registration, signed contract, and ACH authorization form.
How can I reduce stipulation-stage fallout?
Pre-collect bank statements during application using Plaid or MX integration. Send stips checklist immediately upon approval. Daily follow-up on pending stips. Offer document upload via SMS for friction-free submission. Designate a stips coordinator for handoff from sales rep to funding.