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Proof of Funds (POF)

Proof of funds [POF] , refers to a document or documents that confirms an individual’s or entity’s financial capacity to complete a specific transaction. Proof of funds comes in the form of a bank, security, or custody service. They ensure the credibility and feasibility of the intended purchase or investment.

Key Highlights

  • Proof of funds is a document that demonstrates an individual’s or an organisation’s ability to finance.
  • POF is typically required for large transactions such as the purchase of a house.
  • Common forms of POF include bank statements or custody statements.
  • Basic information, such as account balances, bank name, and address, bank statement,and authorised signatures, are required on the proof of funds document.
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Requirements of a POF document

  • Name and address of the issuing bank
  • Official bank statement
  • Balance of funds in checking and savings accounts
  • Total balance across all
  • Signature of authorised bank officer

If the funds you plan to use for the purchase are spread across multiple accounts, POF must be submitted for only one for clarity and simplicity. Most of the banks issue a few documents within 1 to 2 business days.

Once you have your POF document in hand, you want to ensure that it is secure at all times. Some con artists planning a financial scam may request proof of funds to make sure that they are concentrating their efforts on someone with significant financial worth. Therefore, it is important to make sure that you only POF document to the trusted individual whom you have investigated.

What is POF?

POF is crucial for building. Trust between parties involved in large and huge transactions. Particularly for the purchase of a house, the seller or the mortgage company wants to see if you have enough money for the down payment and the closing costs. A POF acts as a safeguard, confirming the availability and legality of all funds. It provides confidence that the buyer is financially prepared to proceed.

Difference Between POF and POD

While proof of funds confirms the availability of sufficient liquid capital, proof of deposit confirms that specific funds have been deposited in an account. For example, when applying for a mortgage:

  • POF makes sure that you have enough funds for the down payment
  • POD confirms that those funds were actually deposited and also clarifies whether they came from the applicant’s own resources or as a gift

Proof of fund is a critical document in financial transactions. At OIBL, we help our clients in issuing a valid, incredible POF document, which is customised to their transactional needs.