When a buyer and seller wish to engage in a large transaction that may take time to complete, the seller or a financial intermediary may often want proof that the buyer is actually capable of paying for the purchase. This is where proof of funds or (POF) comes in. 

It is a document or a set of documents that prove beyond reasonable doubt that the buyer in question has the capacity, and sufficient legal access to liquid assets (cash and tradeable securities), to ensure the successful completion of the transaction. Basically, it is documentary proof that you have the money to pay for what you want to buy.


Obviously, you should have legal access to the funds or liquid assets required. Apart from that, a proof of funds document will usually contain the following information: 

  • Issuing bank’s name and address
  • Official bank statement(s)
  • Balances in both chequing and savings accounts
  • Balances of total funds
  • Authorized signature of a bank official
  • A period of validity statement

In the event your funds are held across multiple accounts, then you will need to provide the information for all of these accounts along with relevant statements. 

Blocked Funds

When issuing proof of funds, as an added layer of surety, it is possible for the issuing bank to block that value of funds. This means that, while the funds still remain in the ownership of the buyer, the issuing bank will hold these funds in a separate account that the buyer cannot access, until the transaction is completed. 

At Euro Exim Bank, we are empowered to issue POF documents to our clients, along with our host of cutting-edge trade finance solutions. Proof of funds can be provided in various forms including bank comfort letters (BCL), bank statements, SWIFT MT messages, bank guarantees, standby letters of credit (SBLC) and escrow accounts. 

Use in Trade Finance

With parties who do not know each other well interacting during the course of international trade, there is often a requirement for POF documents, to ensure the good standing of the buyer. In this event, a POF document from Euro Exim Bank can provide your clients with the security and comfort that they seek.