NG Finance · Business Financing Encyclopedia
Business loan approved but funds not released: what to check
The bank has approved the loan, suppliers await payment, yet funds have not arrived. We distinguish approval from readiness to disburse and identify remaining obstacles.
One-minute overview
- Establish what was approved: a preliminary offer, final transaction terms or a particular drawdown.
- Check disbursement conditions. Signing may be only one required step.
- Obtain an outstanding-item list: document, responsible person, deadline and bank acceptance.
- Separate decision validity, availability and repayment dates. They are different deadlines.
- Prepare backup payment plans. A promised transfer does not establish confirmed payment capacity.
Owners may treat approval as completion and confirm purchasing, delivery or project launch. Documents, approvals and agreed actions can still stand between a positive answer and actual funding.
The central question is: what must happen before funds are released, and who owns each step? Without that answer, the receipt date remains uncertain.
1. What “approved” means
Review the underlying document or message. App notifications, manager emails and signed agreements may differ in content and legal effect.
| Stage | What to establish | What is not yet assured |
|---|---|---|
| Preliminary offer | Remaining checks and changeable parameters | Final amount, rate and disbursement date |
| Positive application decision | Validity and transaction conditions | Funding without completing requirements |
| Signed credit agreement | Release conditions, timing and request process | Automatic disbursement if further actions are required |
| Drawdown requested | Acceptance, available headroom and conditions | The entire facility being released on one request |
| Credit provided | How recorded and where directed | Unrestricted use where a specified purpose applies |
Russian Civil Code Article 819 links the bank's funding obligation to contractual amounts and terms. Signed wording matters more than a general approval message.
Check how credit is provided. Funds may directly settle agreed transactions. Under a statutory same-lender refinancing arrangement, credit may be provided without entering the debtor's bank account. No free account balance alone does not establish transaction status.
2. Conditions that may remain
Check each against your documents; this is not a universal bank requirement list.
Incomplete signatures
Check guarantees/sureties, pledgor documents, appendices and requests as well as the loan. Confirm every party's electronic signing and bank acceptance.
Check signatory authority and corporate resolutions. Sending a file is not bank acceptance.
Unfinished security formalities
Identify the required event: signing, registration, confirmation or another agreed condition.
For insurance, check assets, term, cover and premium evidence. Obtain a precise correction list before replacing a policy on verbal comments alone.
Unconfirmed own contribution
Establish amount, timing and evidence. Supplier advances and account cash may be treated differently under the particular transaction.
Purpose documents not accepted
Match suppliers, specifications, invoices and payment purposes to approved use. Changes may require prior approval.
No release request
Check whether a separate request is needed. Facilities may require a form, notice period, date and compliance with restrictions. A signed agreement does not replace a required instruction.
Business circumstances changed
Disclose factual changes such as new loans, arrears, disputes or ownership changes and ask their effect and basis.
Do not assume every change lawfully permits refusal, but do not conceal changes the agreement requires you to report.
3. Check each deadline separately
Combine these dates rather than merely asking for Friday payment:
- Offer or decision expiry — where the bank sets one.
- Conditions-precedent deadline — when documents and security must be ready.
- Credit availability period — the last date for requesting funds.
- Drawdown notice deadline — allowing for processing time.
- Supplier payment date — under the supply agreement.
- Repayment date or schedule — separately for the facility and drawdowns where different.
Request extension procedures before expiry; do not assume renewal. After signing, assess the current agreement and the significance of earlier decision validity separately.
4. An open facility does not mean unrestricted access
Distinguish total contractual limit, outstanding debt and currently drawable funds. Their relationship depends on facility type and conditions.
Before drawing, check:
- funds available on the required date;
- effects of previous drawdowns and repayments;
- whether availability has expired;
- documents needed for each transaction;
- unfulfilled conditions for the next drawdown.
For the mechanics, see using revolving credit: drawdowns, limits and repayment . Post-disbursement obligations are covered in loan agreement covenants .
5. When funds are needed by a date
Create a short release plan to replace vague waiting messages with actions.
| Item | Responsibility | Completion evidence |
|---|---|---|
| Credit documentation pack | Signatories and bank manager | Full-pack acceptance |
| Security formalities | Pledgor and specialist bank staff | Evidence required under transaction terms |
| Purchasing documents | Supplier relationship owner | Accepted agreement, invoice and specification |
| Disbursement request | Authorised company employee | Bank acceptance status |
| Funds provision date | Company and bank | Contractual timing and confirmed status |
Add deadlines and document/message links. Request acceptance for completed items and precise actions for outstanding ones.
Example: approval exists but purchasing is at risk
Illustrative situation. Equipment costs RUB 12 million: RUB 3 million own funds and RUB 9 million borrowing. Supplier payment is due in five business days.
Own contribution and security must be confirmed before release, but the finance director planned only around approval.
Establish outstanding actions and realistic timing, staged supplier payments and postponement effects. Promising full payment on the original date without checks is risky.
Amounts and timing are illustrative, not a client case or product terms.
6. Writing to the bank about delay
Use the agreed channel, agreement/application number and required date. Request verifiable information.
Suggested request
Please confirm the current financing status under our application/credit agreement.
- Which disbursement conditions remain outstanding today?
- Which document clauses establish them?
- Which documents are accepted and which require correction?
- Has the release request been accepted and what amount is available?
- What release deadline applies after remaining conditions are completed?
- Are any obstacles subject to a separate bank decision?
Please provide one outstanding-action list and a responsible contact for next steps.
If unclear, escalate to the client-service manager or submit a formal request. Retain submission, acceptance and timing evidence.
7. Can approval be withdrawn?
Separate preliminary decisions from signed obligations. For a signed agreement, assess terms, completed conditions and applicable law.
Russian Civil Code Article 821(1) permits refusal where circumstances clearly indicate non-repayment on time. Paragraph 3 permits cessation of further lending for breach of agreed use.
This does not justify every delay as a change of mind. If conditions and contractual deadlines are met but breached by the bank, request its written position and provide documents and performance evidence to a lawyer.
8. Reducing cash gap risk
Prepare calendars with timely and delayed funding. Identify payments whose postponement causes material consequences.
- Discuss the supplier schedule. Check written staged-payment or date changes.
- Assess available business cash. Include payroll, taxes, rent and mandatory settlements.
- Price the fallback. Short borrowing may mature before its repayment source exists.
- Check new-debt effects. Backup borrowing may affect covenants and main transaction parameters.
- Recalculate purchasing economics. Check continued viability after changed prices, timing or expenses.
Use the guide on calculating cash flow gaps . Before signing, also check repayment schedule affordability .
9. Pre-disbursement checklist
- Agreed financing parameters are documented.
- I know whether the agreement is signed and its full document set.
- Conditions and current status are listed.
- The bank confirms required document acceptance.
- Available amount, provision method and permitted use are known.
- A drawdown request is submitted if required.
- Availability and processing deadlines are checked.
- Supplier dates match realistic funding timing.
- A delay fallback exists.
Frequently asked questions
How soon after approval are funds released?
No universal period applies. Check your agreement, outstanding actions and request process.
Does signing mean same-day payment?
Only where the agreement and completed conditions provide this. Separate requests, security or other actions may remain.
Can part be released before all documents are ready?
Only as agreed with the bank and permitted by structure and terms. Obtain confirmation.
Can a supplier change after approval?
Check purpose and payment-document requirements and whether approval or amendments are needed first.
What if the manager keeps moving the date?
Request written obstacles, contractual bases and document statuses. If timing is breached, submit a formal request and seek legal assessment.
When to seek help
Support is useful with several entities, pledgors or sureties, supplier coordination or difficult initial conditions.
Establish actual release requirements, completed actions, negotiable points and whether the remaining timetable is sustainable.
Sources and legal basis
- Russian Civil Code Article 819: credit agreement .
- Russian Civil Code Article 821: refusal to provide or receive credit .
The legal section was checked on 5 October 2026. Checklists support reviewing your transaction rather than universal bank requirements. This article is for information; disputes require assessment of the specific documents and circumstances.