How to Respond to a Flow of Funds Request
You’re trying to onboard your business on Busha, and we’ve requested a Flow of Funds document. You’re probably thinking, “What does that even mean?” Don’t worry. This guide will walk you through it, step by step.
What Is a Flow of Funds?
Think of it like a money map for your business.
It shows:
- Where money comes from — like your customers, clients, partners, and investors.
- Where money goes — like vendors, suppliers, salaries, office rent, subscriptions.
- How it moves — through bank transfers, crypto payments, online gateways, POS, etc.
This isn’t about judging how you run your business. It’s about helping us understand how money flows through your system so we can understand Busha’s prospective role in your fund flow.
Why Busha Asks for This
As a licensed exchange, we must understand our business clients better. A Flow of Funds helps us:
- Know where your business money comes from.
- Understand Busha’s role in your fund management operations
- See who you pay and why.
- Stay in line with regulatory rules and financial safety practices.
If we didn’t ask for this, we’d be dropping the ball on security for you and everyone using the platform.
What to Include in a Flow of Funds
There’s no single format. But here’s what a good Flow of Funds covers:
1. Sources of Funds (Money In)
Explain where your business will source the funds to be used on Busha Business:
- Client funds?
- Your business funds?
- Direct bank deposits from customers?
- Crypto from clients overseas?
- Support from partners or investors?
2. Destination of Funds (Money Out)
Tell us where the funds will be sent:
- Managed on Busha?
- Sent to an external address?
- Managed on Busha on behalf of clients?
- Crypto payouts?
- Settled as USD Payouts?
3. Transaction Methods
Describe how the money moves:
- Bank-to-bank?
- From wallet to wallet?
- Through payment processors like Paystack, Remita, or crypto exchanges?
Example:
“We accept NGN via Paystack and USDT to a Binance wallet. We pay out salaries through Zenith and occasionally use Busha for supplier payments.”
Sample Illustration of a Flow of Funds Chart
Factors to note
- This is a sample for illustrative purposes only. It may not align with your operations. Please speak to a compliance or product specialist for guidance. You may also reach out to us for any further advice.
- This sample indicates the source and destination of the funds. It also shows that Acme Inc. is responsible for its Customers and not Busha.
- The customers in this illustration have committed money to the purchase of crypto, which Acme used to purchase the crypto from Busha and settled its customers’ designated wallets.
What Busha Looks For
We’re not here to micromanage your finances. We’re looking for:
- Clarity — Can we clearly see how money moves in and out?
- Legitimacy — Are the sources and uses of funds clear and legal?
- Consistency — Does it match your business type?
No need for lengthy reports or complex finance speak.
Tips to Make It Easy
- Be honest: We’re not grading your business. We just want to understand how we can serve you better.
- Keep it simple: Use clear, short sentences. No need for jargon.
- Don’t delay: The faster we receive your flow, the sooner your account gets approved.
In Summary
A Flow of Funds isn’t something to fear; it’s just your business money story in a small diagram. It helps Busha understand your business model and how we can serve you with our business products.
If you’ve been asked to send one, take a few minutes to sketch it out and send it in. And if you’re confused or stuck, we’re always here to guide you.
Got questions? Hit reply or chat with our support team anytime.
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