What is Proof of Funds, and When Do You Need It?

Proof of Funds Explained

POF meaning and definition

POF has a simple meaning: it is an official confirmation from a bank or other financial institution, state, or other entity that you own or control a specific amount of funds. This can be money in a current or savings account or other liquid assets that can be quickly accessed. Lenders, sellers, and even immigration services use this proof to ensure you can actually afford a purchase, investment, or visa expenses.

What documents count as proof of funds?

The most common proof of funds example is a recent bank statement for proof of funds. A certified letter from the bank, an investment account statement, a notarised deposit certificate, or a certificate from social or government agencies confirming regular salary, pension, or other official payments is also acceptable. The main thing is that the funds are easily accessible. Cryptocurrency or illiquid assets are rarely accepted unless they are converted into cash and confirmed by a financial institution. The document must include your name, account number (in full or in part), and current balance.

Common situations where POF is required

Proof of Funds may be required during various operations related to your business activity: to purchase commercial real estate, open a company abroad, open a corporate bank account, or participate in large tenders. Sellers, partners, and financial institutions want to make sure that you can cover start-up costs, pay for a deal, or make other significant payments without delay.

Proof of funds is often required when applying for a visa, as immigration authorities need to be sure that you will be able to cover your living expenses, travel costs, and other major payments during your stay in another country.

How to Show Proof of Funds

Bank statement as proof of funds

One of the simplest ways to provide confirmation is with a recent bank statement. Download an official PDF from your online banking or request a certified copy at a branch. The document should show your name, the bank’s logo, all transactions for a certain period, and the current balance. Avoid altering or hiding details, as this can raise concerns when you demonstrate how to show proof of funds to counterparts or a financial agency.

Proof of funds letter from a bank

Another option is an official letter from your bank confirming your funds. This is usually a one-page document confirming your balance, signed by an authorised bank employee. It is particularly useful when you do not want to disclose all your transactions but need to demonstrate your financial capacity to registrars, partners, investors, or when opening a corporate account. This format is also widely accepted by institutions that register your business, banks, and other financial institutions.

Proof of funds form or template examples

Need a proof of funds template? Banks, social services, and other institutions that can officially confirm the receipt of funds (e.g., salary or social benefits) offer ready-made forms with basic information: your name, account details, exact amount, and date. It is best to obtain such a proof of funds form directly from these authorities, as an officially certified document looks professional and greatly simplifies verification.

How to Obtain a Proof of Funds Document

Requesting a proof of funds letter

The next question is: how to get proof of funds. If it is a bank statement, contact your bank by phone, online banking, or in person at a branch and request a bank statement with your current balance. Clearly explain that the document is needed to open a corporate account, participate in a tender, confirm investments, or for other purposes. If you are applying online, it is usually sufficient to provide your account details, but when visiting a branch, the bank may ask for proof of identity. Banks are familiar with such requests for commercial purposes, so the procedure is usually quick and straightforward.

To immediately answer the question of how to obtain a proof of funds letter, you can also contact your bank, social security office, or other institution to issue the necessary document.

How to present proof of funds properly

It is important to understand how to present proof of funds. Send a statement in a clean PDF or deliver it in a sealed envelope if required by your partner or bank. Avoid screenshots and unofficial copies. Check the dates, amounts, and your details. A neatly prepared document emphasises your financial reliability, readiness, and interest in any process.

Proof of Funds Examples

Business transactions

Counterparties and financial institutions often request confirmation of funds before signing large contracts, opening corporate accounts, or entering into partnerships. A certified bank statement or official letter proves that you can pay for supplies, start-up costs, or invest in a project, reducing the risk of failure.

Real estate purchases

The process of purchasing real estate may also include a situation where sellers and/or estate agents typically require a bank statement for proof of funds or a letter from the bank for proof of funds before accepting an offer. This requirement is fair and serves to confirm the buyer's ability to make a deposit or cover the costs of the sale, speeding up its closure.

Immigration and visa applications

During the visa application process, many people encounter the question “what is POF” for the first time, as it frequently appears in consular instructions. Most countries require various proof of funds examples (a recent bank statement or a certified financial letter) to confirm that the applicant can cover their living expenses independently. Officials carefully check whether the amount meets the minimum requirements, so the relevance and accuracy of the document are crucial.

FAQ on Proof of Funds

What is proof of funds?

An official document confirming that you have sufficient funds available for purchase, investment, or migration to another country.

How do I get a proof of funds letter?

Order it from your bank by phone, online banking, or in person at a branch, providing proof of identity and the amount for confirmation.

Alternatively, if the source of funds is confirmed by the government or social services, you can also contact the relevant social authorities for an official certificate.

Can a bank statement serve as proof of funds?

Yes, if it is recent and contains your name, account number, and balance.

When do you need proof of funds?

During real estate transactions, large business operations, opening a business abroad, opening a corporate bank account, or applying for a visa, you need to confirm your financial solvency.

Is there a template for proof of funds?

Yes. Most banks provide a proof of funds template that includes your name, account details, amount, and date on official letterhead. They also often add a brief note explaining what is proof of funds.