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How to Write a Proof of Funds (POF)

Follow these steps to draft a Proof of Funds (POF) that survives counterparty review, bank scrutiny and, if needed, ICC arbitration. Grab the free Proof of Funds (POF) template at the end.

Step-by-step

  1. 1. Bank letterhead
    POF must be issued on the buyer's bank letterhead, dated and signed by an authorised officer.
  2. 2. Buyer identification
    Legal name, account number (partially masked is acceptable) and relationship start date.
  3. 3. Funds statement
    Confirm cleared funds available for the transaction. Do not use hedged language ('may have').
  4. 4. Amount & currency
    USD amount matching or exceeding the LC value.
  5. 5. Validity & purpose
    Validity window (usually 30 days) and permitted purpose (single transaction only).

Common pitfalls to avoid

  • Leaving placeholder text like [ ] or {seller name} in the executed copy.
  • Missing signature date, or signing outside the validity window quoted on the document.
  • Referencing Incoterms without the year - always cite 'Incoterms 2020'.
  • Omitting the arbitration seat and governing law - defaults vary by country.
Free template
Free Proof of Funds (POF) Template
Free Proof of Funds (POF) template in Word and PDF. Bank-issued confirmation format for commodity buyers | unencumbered funds, verification clause, validity.
Get the template

How to Write a Proof of Funds (POF): Quick Overview

Follow these steps to draft a Proof of Funds (POF) that survives counterparty review, bank scrutiny and, if needed, ICC arbitration. Grab the free Proof of Funds (POF) template at the end.

Numerical Example: How to Write a Proof of Funds (POF) Step-by-Step

Key pitfall to avoid: Leaving placeholder text like [ ] or {seller name} in the executed copy.

1. Bank letterheadPOF must be issued on the buyer's bank letterhead, dated and signed by an author
2. Buyer identificationLegal name, account number (partially masked is acceptable) and relationship sta
3. Funds statementConfirm cleared funds available for the transaction. Do not use hedged language
OutcomeFollow all steps in order for best results
Source: SSLT Global Editorial - How to Write a Proof of Funds (POF)
Last reviewed: October 2026

FAQ

Can POF come from a private bank?
Yes, but the seller may push back if the bank is not on a top-50 world bank list.
Is a screenshot of the balance a valid POF?
No. Only a signed bank letter is accepted for LC issuance.

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