Stips (Stipulations)
Stips (short for stipulations) are the documents and verifications the merchant must provide between MCA approval and funding — typically including driver's license, voided check, signed contract, business verification documents, and program-specific items.
Why This Matters
Stips are the operational chokepoint between approval and funding. Common stips: driver's license (identity verification), voided business check (banking verification), signed merchant agreement, signed personal guarantee, EIN documentation, business license (industry-dependent), lease agreement (location verification), and processor statements (card-dependent merchants). Stip collection typically takes 24-72 hours from approval. Slow stip collection is a major reason for deal cancellation — merchants disengage during prolonged paperwork phases. Top ISOs maintain dedicated stip-coordination roles to accelerate this critical phase.
Frequently Asked Questions
Frequently Asked Questions
What stips typically slow MCA funding?
Bank statement updates (often need fresh statements if approval is more than 7 days old), business verification (lease, license updates), and personal guarantee execution if merchant hasn't received the agreement promptly. Slow stip collection is the leading post-approval cancellation cause.
How can ISOs accelerate stip collection?
Pre-collect anticipated stips during application phase using Plaid for bank verification, document upload tools for licenses and IDs, and electronic signature for contracts. Send stip checklist immediately upon approval. Daily follow-up on outstanding items.