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POF vs RWA

POF proves the buyer has the cash. RWA proves the buyer's bank is ready to open the payment instrument. Sellers usually want both.

At a glance

CriterionPOFRWA
Issued byBuyer's bank or fiduciaryBuyer's bank only
StrengthShows funds existShows bank will open LC/SBLC
Turnaround1-2 banking days3-5 banking days
FeeLow or noneHandling fee
Validity30 days typical10-30 banking days
Use POF when

Use the POF to show the seller you have cleared funds.

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Use RWA when

Use the RWA when the seller wants confirmation that the bank will actually open the LC or SBLC.

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FAQ

Is POF enough by itself?
For small trades yes. For large LC-backed trades, sellers usually escalate to RWA.
Can a private bank issue RWA?
Only if it is a licensed institution that can open the payment instrument.

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