Courtesy Deposits are not collateral. They are not funds you can access or use directly. Instead, they act as a powerful signal of financial backing to help you secure funding from a bank or financial institution. In simple terms, a Courtesy Deposit is a time deposit (typically in the form of a Jumbo Certificate of Deposit) placed in a lender’s institution on your behalf. It is insured, secure, and completely controlled by the banker — not the borrower.

The purpose of the Courtesy Deposit is to give confidence to the lender. It shows that there is already a substantial deposit in their institution related to your loan proposal. This changes the dynamics of the discussion. Rather than seeing you as a high-risk borrower, they begin to view your project more favorably. In turn, this can help you get the approval you need, even if your personal collateral or credit history isn’t ideal.

However, it’s crucial to understand the limitations. You cannot pledge, encumber, or touch these funds. They are not guarantees or collateral in a legal sense, and the bank does not have the right of offset. Only your banker can view the deposit and use it as a point of reference during the underwriting process.

At Deposit Capital, we specialize in arranging Courtesy Deposits for clients with strong projects that are professionally presented and bankable. Our service is highly structured and transparent, and we follow strict conditions to ensure compliance and effectiveness. This includes working only with acceptable banks, ensuring proper insurance coverage, and maintaining full separation between the client’s assets and the Courtesy Deposit funds.

If you’re looking to enhance your chances of funding, especially when dealing with banks that require additional assurance, a Courtesy Deposit could be a smart step forward. We invite you to speak with our team to find out if this solution fits your project.