What is proof of funds and how it helps in the commercial trade industry

Proof of funds are a type of financial instrument that guarantees the seller that buyer has an adequate amount of money to take part in the business transaction. This service is offered by many financial institutions and plays a crucial role in international trading.

proof of funds

In this article, you will explore the importance of proof of funds. So let's start.

What is proof of funds?

Proof of the fund is a type of document that certifies an individual or corporation has sufficient amount of funds to complete a business transaction. In other words,  you have the required money to purchase a thing.  These documents give confidence to the seller that you are a serious trader or buyer.  

In a proof of funds, you have to add your name, account credentials as well as current balance in your account with a specific date. All these credentials should be mentioned on a letterhead from your bank and should be attested or signed by an official employee of that particular institution.

The proof of funds can be requested by a seller from the buyer to hold the trade and at the same time, they wait for the procedure to be close. The proof of fund plays an important role in business transaction as it helps to secure the trade to some extent. Since most of the time buyer fails to pay the money and unable to complete the transaction thereby.

Why You Need a Proof of Funds Letter for the business transaction?

At first, no real estate agent or seller will not believe at your word that you have sufficient funds to buy a property. Whether you are purchasing for yourself or planning a flip, you will require proof of funds.  Although the proof of funds will be even more meaningful if you are willing to pay cash.  

Find a reputed financial institution

Oxford Credit Banque Limited (OCB) is a Non-Banking and Non-Financial Institution offering its services, through its principals and associates experience over many years. OCB has recently established a presence in London with its associates, partners and collaborators having an international reach. The company works on a sound business model that focuses on building and nurturing long term relationships with its customers and promoting business growth. They offer services such as proof of funds, letter of credit, bank guarantee and much more.  For any financial advice visit oxfordbanque.com to know more in detail.



Location: London, UK

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