Also called: Funding, Drawdown
Settlement
Settlement is the point at which a lender advances the funds and the transaction completes — the supplier is paid, ownership transfers and the security is registered. It follows unconditional approval and satisfaction of all conditions.
What is a settlement?
Settlement is the point at which a lender advances the funds and the transaction completes — the supplier is paid, ownership transfers and the security is registered. It follows unconditional approval and satisfaction of all conditions.
Example
An equipment settlement occurs when signed documents, a valid tax invoice and supplier bank details are all confirmed and funds are transferred.
Why it matters
Approval is not money in hand; missing documents at settlement stage is the most common source of last-minute delay.