Proof of funding requests
In this brief video, Jonathan Jay, founder of The Dealmaker’s Academy, reveals how to deal with proof of funding requests from a broker or business transfer agent. He explains:
- Why only a fool would show their hand to a broker at such an early stage.
- How to respond to proof of funding requests.
Do you prefer to read? Here’s the transcript:
Hi, this is Jonathan Jay from the Dealmaker’s Academy.
Let me give you a top tip today on what to say when someone asks you for proof of funds.
Now, typically this happens if you’re speaking to a broker or some sort of business transfer agent.
They will, in the very early conversation, they will ask you for proof of funds.
Now, of course you would be a fool to show someone your bank balance or to show your hand, you don’t want to do that because it weakens your negotiating position.
Now we can’t blame the poor broker, because probably the person that you’re speaking to on the phone is reasonably junior, they’re the first level of screening at the brokerage and as a result, they’ve been given a script to follow and one of those questions is do you have proof of funding?
Well, the answer is well, I don’t really know what we’re funding yet, so how can I give you proof?
And this is what you would be saying, you’d be saying, I work with other investors, I work with private individuals, high net worth individuals, and funding is always available if the numbers stack up.
At this early stage, I don’t even know what the numbers are, so let’s find out what the numbers are, let’s find out whether the numbers stack up, and if they stack up, funding is always available for the right deal.
So that’s how you deal with that question.
I’ll see you next time, hit the subscribe button for the next video and the next tip.
See you soon.
