E-commerce · Deal Structure
Processor reserves in deal structure
Published · Reviewed by The Diligence Standard Team · Updated
Existing holds and potential buyer reserves should be treated separately from ordinary cash.
Records to reconcile
- Reserve schedule
- Processor correspondence
- Buyer underwriting terms
Warning signal
Seller reserves are expected to transfer or buyer reserves are omitted.
Transaction impact
Closing liquidity may be materially lower than modeled.
Response
Confirm both sides’ treatment and allocate pre-close exposure.