I have a bank asking me to confirm that a client owns his business

[schirallicpa]

Are you kidding me?!

They want my signiture on letterhead stating that the guy owns his Sch C business.  Unbelievable.

 

 

[Jack from Ohio]

13 minutes ago, schirallicpa said:

Are you kidding me?!

They want my signiture on letterhead stating that the guy owns his Sch C business.  Unbelievable.

 

 

We don't provide such documents.  If you wish, I can send you a copy of what we do create, then give to the client to provide to the lender.  It is a situation not unlike a huge minefield.

[Medlin Software, Dennis]

What they want is to add you to potential deep pockets should the loan go bad.  Sounds like a separate bank, not the one your client uses, as if it was the client's bank, they would be able to verify income, and probably expenses, by looking at records they already have.

[Max W]

These requests come from the, oftentimes stupid, loan underwriters.

[JMovichEA]

Let them do their own due diligence. I don't provide any kind of "comfort letters"

[schirallicpa]

33 minutes ago, Jack from Ohio said:

We don't provide such documents.  If you wish, I can send you a copy of what we do create, then give to the client to provide to the lender.  It is a situation not unlike a huge minefield.

Yes - please - I would like to see what you send them.  

[BHoffman]

Here is what I send them:

 

 

[JMovichEA]

There's some sample letters here if you absolutely have to send something:

 

http://www.cpai.com/business-insurance/professional-liability/ThirdPartyVerificationLetters

[Lion EA]

I've told clients to get a certificate from the Secretary of State!  I don't send comfort letters.  When a client really gets to me, I send the client a letter that beats around the bush about the bank doing its own due diligence and state which tax form I file for the business and a bunch of nothing.  I send to client who can do whatever they want with it.

[Catherine]

11 hours ago, Lion EA said:

a letter that beats around the bush

Over the years I have written a couple of great say-nothing letters that include the buzzwords that let the mindless underwriters check their little checkboxes.  ALL such letters go to the client only, for them to send to whomever is whining about wanting it.