07 Jul Proof of Funds (POF) Meaning & Uses of POF
Proof of Funds (POF) Meaning and Uses of POF
What Are Proof of Funds (POF)?
Proof of funds (POF) refers to a document or documents that demonstrate a person or entity has the ability and funds available for a specific transaction. Proof of funds usually comes in the form of a bank, security, or custody statement. The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are accessible and legitimate.
Understanding Proof of Funds (POF)
When an individual or entity is making a large purchase, such as buying a home, the seller usually requires proof of funds. This ensures not only that the buyer has the money available to make the purchase, but also has legal access to the funds, as the proof of funds comes from a verified authority, such as a bank. Particularly for the purchase of a home, the seller and/or mortgage company wants to see if you have enough money for the down payment and the closing costs.
It’s important to note that in the majority of instances, the proof of funds must refer to liquid capital, primarily cash. Certain investments, such as retirement accounts, mutual fund accounts, and life insurance, do not qualify as proof of funds.
Requirements of a Proof of Funds (POF) Document
When providing a proof of funds document, there is certain information that is required to be included. The following are some of the most common pieces of information that will need to be disclosed on a proof of funds document:
- Bank’s name and address
- Official bank statement
- Balance of funds in the checking and savings accounts
- Balance of total funds
- Signature of authorized bank personnel
If the funds you plan to use for the purchase are spread across multiple accounts, you will need this information for all of them. It may be easier to move all of your funds into one account, therefore having to provide this information only once, and making the total amount of funds available easier to follow. It is possible to get a proof of funds document within a day or two from most banks and financial institutions. We will not accept a proof of funds that is more than 3 weeks old prior to signing the contract.
Are you looking for proof of funds (POF) or Blocked Funds for investments or trading?
You can have access to amounts between $500,000 to $2 Billion. The blocked funds will be set up in a bank account with your name or company name as the beneficiary and the funds will be available world Wide.
Proof of Funds (POF) Meaning and Uses of POF
Grand City Investment Limited provides Proof of Funds, POF and mt799 blocked funds to our clients for credit enhancement purposes. Blocked funds are in an account with the client listed as the funds owner or beneficiary for a pre-determined amount of time.
These can be:
- Bank Comfort Letters (BCL)
- Bank statements
- SWIFT MT799
- SWIFT MT760
- SWIFT MT199
- Bank Guarantees
- Stand By Letter of Credit (SBLC)
- VOD (1006)
- Escrow Accounts (with major escrow companies)
It is important to understand that this is not a loan and the money will never move from the account. It is blocked, but free and clear.
You receive Verification of the funds and proof that the funds are yours (for verification purpose only). There are different ways to verify those funds. Some banks or financial institutions let you go to your local bank or branch. Some have a dedicated National 800 number, while others use online services.
The cost for this service varies according to the POF amount, the type of account as well as the length of time needed to show the funds.
We must be satisfied with your capacity to pay the up front fee for providing Proof of Funds (known as the Arrangement Fee). Payment of the Arrangement Fee in the form of a “success fee” is neither possible nor acceptable. You pay nothing, you get nothing.
Proof of Funds (POF) vs. Proof of Deposit (POD)
In commercial banking, proof of deposit is the financial institution’s verification that funds have been deposited into an account and where these deposits came from. To do so, the institution will compare the amount written on the check to the amount on the deposit slip. When applying for a mortgage, in addition to demonstrating proof of funds, a buyer will have to demonstrate that funds in fact have been deposited into an account and demonstrate where they came from.
Mortgage companies typically want to see where the deposits originate from, whether they come from the borrower or are they gifts from other parties. This helps determine if the borrower will be able to furnish the mortgage loan.
In addition to a proof of funds document and a proof of deposit, a pre-approval letter is required to give to the seller or the seller’s agent when purchasing a home. The pre-approval letter will prove that you are able to obtain a mortgage to pay for the rest of the home purchase.
Uses of Proof of Funds (POF)
When a company or individual is making a large purchase, such as buying a home, or to purchase a bank guarantee etc, the seller usually requires proof of funds. This ensures not only that the buyer has the money available to make the purchase, but also has legal access to the funds, as the proof of funds comes from a verified authority, such as a bank. Particularly for the purchase of a home, the seller and/or mortgage company wants to see if you have enough money for the down payment and the closing costs.
Proof of Funds (POF) Providers
Grand City Investment Limited is a Proof of Funds (POF) provider. We also provide Trade Finance, Recourse Loan, Non Recourse Loans, Insurance, Investments, Wealth Management, Portfolio Management, Trade Platforms, Private Placement Programs as well as the issuance and monetization of Bank Instruments such as Standby Letter of Credit (SBLC), Bank Guarantees (BG), Usance LC, Letters of Credit, Differed Letters of Credit and Funding for companies, SME’s and private individuals.
These Bank Instruments are issued through top AAA rated banks such as Citibank New York, Chase Bank, Welsfargo Bank, Bank of America, HSBC Hong Kong or HSBC London, Barclays bank London, Standard Chartered Bank London, Dubai or Hong Kong, UBS Switzerland, Deusche Bank AG Germany etc.
Our bank financial instruments are Cash-Backed and Stand as Obligation from our Bank on behalf of our Clients for their Credit needs, Business and Project Funding. All our Bank Instruments can be used to secure Funding for Projects, Business Expansions and Private Placement Programs (PPP).
We can help you to obtain financing for your business or projects, activate credit lines, issue & provide Letters of credit, BG or SBLC for you, provide loans against financial instruments, and monetize financial instruments.
Contact us today for your proof of funds, pof services, blocked funds, mt799, swift mt760, lease bg sblc.
Email: firstname.lastname@example.org | Website: www.grandcityinvestment.com