If a new company receives its initial funding through several transfers, prepare a receipt-by-receipt explanation. The total balance does not show who paid or whether each payment is equity, a loan or another transaction.
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Keep the explanation factual and consistent with the corporate and accounting records.
Map each receipt
Record the date, payer, currency, amount and payment reference. Link it to the relevant agreement or instruction and identify any exchange difference or fee.
A payer related to the founder may still be a different legal person. Do not describe all group transfers as the founder’s personal savings without evidence.
Example: a parent and founder both pay
The company receives funds from an overseas parent and from an individual. Explain each intended transaction separately. Check which party will hold shares or be owed money under the actual documents.
Prepare a funding evidence index
- Bank receipt and payer identity.
- Underlying source and supporting records available.
- Subscription, loan or other agreement.
- Corporate approvals and completion evidence.
- Accounting classification and reconciliation.
- Unresolved questions and factual explanations.
MAS’s AML guidance explains that financial institutions must know customers, including beneficial owners, and review accounts. Respond accurately to the bank’s actual request; do not assume one standard pack guarantees acceptance.
Resolve mismatches before repeating the explanation
If the payer differs from the proposed investor or lender, obtain advice and supporting instructions. Do not invent a loan agreement after the event merely to make an unexplained receipt look routine.
Give the accountant and secretary the same final facts so the ledger and corporate records agree.
Share documents through verified channels
Confirm the bank contact and required scope before sending sensitive records. Retain the request and the response, with access limited appropriately.
Keep any follow-up questions visible. Submitting documents is a step in review, not proof that the account or transaction has been approved.
Does one total bank balance explain the funding?
No. Trace each receipt and its actual purpose.
Related banking and corporate records
See our bank authority checklist, payment reconciliation guide and company handover guidance.
Prepare a clearer company banking file
Email [email protected] or WhatsApp +65 8501 7133 for corporate records and accounting support. Tax advisers can assist with transaction questions, and legal advisers from associated law firms can review funding agreements and banking disputes.