Proof of Funds for a Dental Practice Purchase

What does proof of funds show?

For a dental purchase, use proof of funds to answer a dated question about identified money. Record whose funds they are, the amount needed, the institution's evidence and any restrictions. Agree what the recipient needs to verify. Do not edit a balance or remove a restriction to make the document appear sufficient.

A balance statement, permission to use another person's money and a lender's financing decision answer separate questions. Read each document's actual scope. Use the underwriting guide for the lender process and the 100% financing guide for the costs a proposal covers.

Why can an account total overstate usable cash?

Fidelity's balance definition distinguishes collected cash available for withdrawal from uncleared deposits and reflects sales at settlement. That is a provider-specific field definition. Read the actual institution's labels before relying on a screenshot.

FINRA explains that trade execution and settlement are different events. A sale order alone does not establish that money has reached the acquisition's required destination. Confirm the actual withdrawal and transfer status with the institution.

A supplied balance reconciliation

Assume a fictional account shows the distinct balances below. There are no margin loans, liens or other balances. Only the cash row is confirmed withdrawable now. The buyer separately reserves $25,000 for household needs and has $20,000 of already-committed payments, neither deducted from the displayed cash.

Available purchase cash is $125,000 minus $20,000 minus $25,000, or $80,000. Against a supplied $75,000 cash requirement, the margin is $5,000. The requirement and reserve are invented inputs, not lender standards.

If the $35,000 later becomes withdrawable with no other change, available purchase cash becomes $115,000. In a separate case, reset to today's balance and raise only the household reserve to $35,000. Available purchase cash becomes $70,000, leaving a $5,000 shortfall. Neither case assumes the unsold securities are sold.

Use the evidence for the stated decision

Request the approved secure channel and confirm which identifying fields must remain visible. Keep the original evidence and date beside the reconciliation. When funds move, update their location and avoid counting both the old account and receiving account.

Proof of funds does not authorize access to the seller's files. Initial outreach should remain seller-blind, with an NDA before identifying disclosure. Staff involvement should follow the duties and work required. Use the confidential sale process alongside the funding review.

The purchase-cost guide helps establish the amount being tested. Bring that amount and the current evidence to a planning conversation, keeping account details out of a booking message.