{"ok":true,"canonical_url":"https://dealroom.so/glossary/cancelled-checks","api_url":"https://dealroom.so/api/public/glossary/cancelled-checks","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"cancelled-checks","term":"Cancelled Checks","group":"People and paperwork","definition":"Checks that have been processed and paid by the bank, serving as proof of payment. For due diligence, cancelled checks provide an audit trail for specific expenses or payments made by the seller.","what_it_means":"While less common for large transactions today, cancelled checks (or images of them) can still be requested during due diligence to verify specific payments or expenses of the business. For your equity injection, cancelled checks from your personal account may be accepted as proof of funds, but wire confirmations are generally preferred for larger amounts.","url":"https://dealroom.so/glossary/cancelled-checks","official_sources":[],"related":[{"slug":"bank-statements","term":"Bank Statements","url":"https://dealroom.so/glossary/bank-statements"},{"slug":"audit-trail","term":"Audit trail","url":"https://dealroom.so/glossary/audit-trail"},{"slug":"wire-transfer-confirmations","term":"Wire Transfer Confirmations","url":"https://dealroom.so/glossary/wire-transfer-confirmations"},{"slug":"proof-of-funds","term":"Proof of funds","url":"https://dealroom.so/glossary/proof-of-funds"}],"related_questions":[{"question":"Who specifically counts as an 'associate' for SBA business size checks?","url":"https://dealroom.so/sba-loans/basics/who-specifically-counts-as-an-associate-for-sba-business-size-checks"},{"question":"Does the lender need to collect separate consent forms for background checks from non-owner spouses?","url":"https://dealroom.so/for-lenders/questions/does-the-lender-need-to-collect-separate-consent-forms-for-background-checks-from-non-owne"},{"question":"Are there any specific character or background checks for owners applying for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/are-there-any-specific-character-or-background-checks-for-owners-applying-for-an-sba-7-a-l"},{"question":"What steps must a lender take in E-Tran if a previously authorized 7(a) loan needs to be cancelled before closing?","url":"https://dealroom.so/for-lenders/questions/what-steps-must-a-lender-take-in-e-tran-if-a-previously-authorized-7-a-loan-needs-to-be-ca"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Cancelled Checks","url":"https://dealroom.so/glossary/cancelled-checks","source_type":"DealRoom Data"}}