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

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.

Other how-to guides

How to Write a Sales & Purchase Agreement (SPA)How to Write a Letter of Intent (LOI)How to Write a Irrevocable Corporate Purchase Order (ICPO)How to Write a Full Corporate Offer (FCO)How to Write a Soft Corporate Offer (SCO)How to Write a Non-Disclosure Agreement (NDA)How to Write a NCNDA (Non-Circumvention, Non-Disclosure)How to Write a IMFPA (Irrevocable Master Fee Protection)