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Korean: 한국 고객을 위한
Staff Answer
Mar 29, 2020 - 07:56 PM
Hi,
Thanks for your question. Let me answer it for you.
Proof of funds (POF) refers to a document that signifies a person or an entity has the capability and funds accessible for a specific transaction. Proof of funds usually comes in the form of a bank, security, or custody statement. The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are available and legitimate.
A POF is commonly used when initiating commercial transactions between parties who do not know each other. The purchaser's bank produces evidence in a standard format that their client is good for a transaction up to the decided value, based on certain items, etc. Usually, such letters have to be produced/verified/confirmed by a class A international bank, as local banks do not have the status required by counter-party banks in other countries.
As far as the upper or lower limit is concerned, it depends on the type/category of product or the deal amount agreed upon by the supplier and buyer.
Hope that answers your question.
Thanks and regards,
go4WorldBusiness.com Team
I hope this answer helps you with your future endeavors.
Best regards,
go4WorldBusiness Team
Thanks for your question. Let me answer it for you.
Proof of funds (POF) refers to a document that signifies a person or an entity has the capability and funds accessible for a specific transaction. Proof of funds usually comes in the form of a bank, security, or custody statement. The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are available and legitimate.
A POF is commonly used when initiating commercial transactions between parties who do not know each other. The purchaser's bank produces evidence in a standard format that their client is good for a transaction up to the decided value, based on certain items, etc. Usually, such letters have to be produced/verified/confirmed by a class A international bank, as local banks do not have the status required by counter-party banks in other countries.
As far as the upper or lower limit is concerned, it depends on the type/category of product or the deal amount agreed upon by the supplier and buyer.
Hope that answers your question.
Thanks and regards,
go4WorldBusiness.com Team
I hope this answer helps you with your future endeavors.
Best regards,
go4WorldBusiness Team
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