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Proof of Funds (POF)

Proof of Funds (POF) refers to evidence demonstrating that an individual or entity has the financial capability to fulfill a financial obligation, such as making a purchase or completing a transaction. It is commonly required in various financial and business transactions to assure the other party that sufficient funds are available and accessible.

Types of Proof of Funds:

Bank Statements:

These are the most common form of Proof of Funds. They show the current balance and transaction history of an account held by an individual or organization. The statements should be recent and issued by a recognized financial institution.

Certified Bank Letter:

Sometimes required for larger transactions or where a bank statement might not suffice. A certified bank letter is issued directly by the bank and confirms the availability of funds in a specified account.

Brokerage Statements:

Statements from brokerage accounts showing the holdings and cash balances can also serve as Proof of Funds, particularly in investment-related transactions.

Escrow Verification:

In some cases, funds may be held in escrow, pending the completion of a transaction. Verification from the escrow agent can serve as Proof of Funds.

Loan Approval Letters:

For transactions where a mortgage or loan is involved, a loan approval letter from a financial institution can demonstrate the ability to finance the transaction.

Uses of Proof of Funds:

Real Estate Transactions: Sellers often require Proof of Funds from potential buyers to ensure they have the financial means to purchase the property.

Investment Opportunities:

Investors may need to demonstrate Proof of Funds to participate in certain investment opportunities or to show liquidity for investment purposes.

Business Transactions:

Proof of Funds can be required in business acquisitions, mergers, or large-scale purchases to ensure the financial capability of the acquiring party

.

Visa Applications:

Some countries may require Proof of Funds as part of a visa application process to demonstrate the applicant’s ability to support themselves financially during their stay.

Key Considerations:

Currency and Accessibility: Proof of Funds should specify the currency and accessibility of funds (e.g., available for immediate withdrawal or subject to certain conditions).

Validity Period:

Depending on the transaction, Proof of Funds may need to be recent, typically within the last few months, to ensure the information is current.

Privacy Concerns:

Individuals and organizations may redact sensitive information on bank statements or use alternative forms of Proof of Funds to maintain privacy.

In summary, Proof of Funds is essential in various financial and business contexts to verify the financial capability of individuals or entities. It provides assurance to counter parties that transactions can proceed smoothly and that financial commitments can be met.

The Proof of Funds can be issued with following Banks - Issued MT 760  by

Asia Pacific Investment bank, Malaysia      -     ACE Investment Bank, Malaysia      -                 UBB Investment Bank, Malaysia

Issuing Fees:
1m to 2.5m = 5.50%
2.5m plus to 5m = 5.00%
5m plus to 10m = 4.50%
10m plus to 15m = 4.00%
15m plus to 30m = 3.50%
Above that to 50m = 2.50%

Important Terms and Conditions:

 

1)  All the payments are payable to the Participating Bank / Financial Institutions as per Invoice

2) The client must submit the copy of Contract, Purpose, or if any specific format to be issued

3) The client should disclose correct information to manage and support long term relationship basis.

4) Minimum Face Value between $ 0.50 Million to  $ 200 Million

Contact

Let us know the purpose of proof of funds with underlying documentary evidence for review

+91-9591312211

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