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Proof of funds

From India
To United States of America
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Munmun S.
Apr 28, 2020
What is the meaning "proof of funds" in relation to import export?

2 answers

May 20, 2020
Thanks for your query! Proof of Funds (POF) is a letter or documentation that proves an individual, institution, or corporation has sufficient funds (money) to complete a transaction. A POF is typically issued by a commercial bank or custody agent to provide confidence or assurance to another party that the individual or entity in question has sufficient funds to complete an agreed-upon purchase.The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are accessible and legitimate. A proof of funds letter may be required from a bank. The letter will be 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: bank’s name and address; official bank statement; copy of money market statement and balance; balance of funds in checking and savings accounts; bank certified financial statement; copy of an online banking statement; signature of an authorized bank employee.
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Amber S.
Apr 28, 2020
Proof of funds (POF) refers to a document that signifies a person or an entity has the capability and funds accessible for a specific transaction.A POF is commonly used when initiating commercial transactions between parties who do not know each other. The purchaser's bank produces evidence in a standard format that their client is good for a transaction up to the decided value, based on certain items, etc. Usually, such letters have to be produced/verified/confirmed by a class A international bank, as local banks do not have the status required by counter-party banks in other countries.
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