What Vendors Should Know About Funding Delays

Few things frustrate vendors more than a deal that is approved but not funded.

From the vendor’s perspective, the sale is done. The customer is ready. The equipment is scheduled. And yet, funding gets delayed, which can create confusion, cash flow issues, and strained relationships.

In most cases, funding delays are not caused by credit problems. They are caused by process breakdowns. Understanding where delays typically occur and how to prevent them helps vendors protect deals and get paid faster.

Paperwork Delays Are the Most Common Issue

The majority of funding delays trace back to paperwork that is incomplete, outdated, or inconsistent.

Common examples include:

• Invoices that change after approval

• Missing serial numbers or equipment descriptions

• Incorrect business names or addresses

• Unsigned or partially completed documents

• Bank information that does not match the borrower’s legal entity

  
  

Even small discrepancies can force lenders to pause funding while issues are corrected. This is especially true with equipment financing, where lenders are funding against a specific asset.

Having clean, accurate documentation from the start shortens the path to funding significantly.

Holidays and Timing Matter More Than Most Vendors Expect

Funding timelines are heavily influenced by the calendar.

Bank holidays, end-of-month volume, and year-end slowdowns all affect how quickly funds move. Even if a lender approves a deal quickly, funding can be delayed if documents are submitted during holiday weeks or outside normal banking windows.

Vendors benefit from setting realistic expectations with customers around timing, especially during:

• Holiday weeks

• Year-end tax planning periods

• Peak seasonal buying windows

  
  

A good financing partner anticipates these slowdowns and plans accordingly.

Updated Funding Instructions Are Critical

One of the most overlooked causes of funding delays is outdated or incorrect vendor funding instructions.

Lenders require accurate information for where funds should be sent. If a vendor’s banking details have changed, or if instructions are not provided clearly, funding can be delayed while verification takes place.

Vendors should ensure that:

• Funding instructions are current

• Bank accounts match the vendor’s legal entity

• Any recent changes are communicated before documents are sent

  
  

This is especially important for vendors who work with multiple financing partners or experience frequent account changes.

Communication and Organization Make the Difference

Financing guidelines are not static. Lender requirements, documentation standards, and approval processes change constantly based on risk appetite, market conditions, and internal policy updates.

When communication breaks down or files are not well organized, deals stall.

A strong financing partner stays current on guideline changes and communicates proactively. They flag potential issues early, explain what is needed and why, and keep both the vendor and customer informed throughout the process.

This level of organization reduces surprises and keeps deals moving forward.

Why the Right Financing Partner Matters

Vendors should not be responsible for chasing documents, interpreting lender requests, or troubleshooting funding issues.

The right financing partner:

• Reviews paperwork before submission

• Confirms funding instructions in advance

• Sets expectations around timing

• Communicates changes clearly

• Manages the process end to end

  
  

This allows vendors to focus on selling and delivering, while financing progresses smoothly in the background.

The Bottom Line

Funding delays are rarely random. They are almost always preventable.

When paperwork is clean, timing is considered, funding instructions are current, and communication is clear, deals fund faster and relationships stay strong.

Vendors who work with organized, proactive financing partners are better positioned to avoid delays, protect cash flow, and keep customers confident through the finish line.

   About the Author

   Jared Holmes is the founder of Brilliance Funding Partners, where he helps business owners navigate the commercial lending landscape with confidence. With 10 years of hands-on experience in SBA lending, equipment financing, and working capital solutions, Jared focuses on asking the right questions and delivering financing strategies that make sense for each business. Connect with Jared for a personalized conversation about your options.