Proof of Funds
What is Proof of Fund Document?
Proof of Funds (POF) is a letter or documentation that certifies that an individual, institution, or corporation has sufficient funds (money) to complete a transaction. Typically, a commercial bank or escrow agent issues a POF to provide confidence or assurance to another party, usually a seller, that the person or entity in question has sufficient funds to complete an agreed purchase.
Proof of Funds (POF) refers to a document that indicates that a person or a bsuiness entity has the funds readily available to execute a particular transaction.
Proof of funds usually can be like a bank statement, or a letter issued by bank on a particular date.
The purpose of the Proof of Funds document is to ensure that the funds needed to carry out the entire transaction are available and legitimate.
POF is commonly used when initiating business transactions between parties who do not know each other. The buyer’s bank provides proof in a standard format of the bank stating that its customer has funds available in his/her bank account which is good enough to execute a transaction up to the specified value.
Please make a note that every proof of funds documents comes with an expiry date. After the expiry date the document becomes null and void.
Contents of a Proof of Funds letter
proof of funds letter may be required from a bank. The letter is used to verify that the party who claims to have the money actually has it.
Items that must be included in a Proof of Funds Letter include:
- Name and address of the issuing bank
- Official bank statement
- Balance of funds in checking and savings accounts
- Bank certified financial statement
- Copy of an online banking statement
- Signature of an authorized bank employee
Contact to know more about the process | Praveen N : +971 52 842 9619 | Dubai-United Arab Emirates
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