In simple terms, proof of funds or POF is a document that highlights the degree of monetary resources that are available to a person or an entity

  • Many companies require you to furnish a POF so that they can assess your ability to cover your purchase costs
    • This is because the purchase costs in real estate can be quite high. Such costs can typically include down payments, monthly instalments, as well as closing costs
    • By furnishing a POF, an individual or an entity is able to show that they have the capability to cover all the expenses involved in a deal
  • There are a large number of financial institutions and advisory firms out there in the market that could help you in getting a POF letter
  • This blog discusses the key aspects of a POF letter and its role in the real estate industry

What is a POF Letter

A POF letter can be furnished in different forms

  • The most basic POF can be in the form of a printed bank statement. Such a statement is sufficient to show the amount of funds at your disposal. It proves to be quite helpful in real estate transactions
    • Another form of POF letter is the one that can only be obtained from banks or financial institutions. These letters typically include information about your business or earnings, as well as the exact amount of liquid funds that you have at your disposal
  • Another important aspect of POF letters is that they can be obtained in the form of a custody statement. These custody statements highlight your assets and can be obtained from your bank
  • A typical POF letter includes several different types of information. Some of the key details included in the letter include your name, your address, an official bank statement, total balance of funds, as well as the signature of a bank official
    • The signature of a bank official is mandatory in some cases within the real estate industry
    • This is because real estate details can include large payments. If the POF letter is furnished without the signature, it may not be accepted by the counterparty
    • Therefore, you must enquire about the type of POF needed for your real estate transaction before you actually choose to go ahead with it
  • Overall, it is clear that POF letters are important for real estate transactions. These letters can provide companies with a sense of security regarding the completion of their payment


To conclude, POF letters are an integral part of the real estate industry. In case your organization is unclear about any aspects of business, you can always reach out to the experts. Institutions such as Euro Exim Bank offer customized support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.