Proof of Funds, BCL, MT199, MT799
Proof of Funds, BCL, MT199, MT799 – What They Are and When to Use Them
Proof of Funds (POF) instruments are a key part of serious trade, project finance, and real estate negotiations. They’re used to show that you — or your client — have the liquidity to back a deal. But not all POFs are created equal.
This guide breaks down the most common formats: the Bank Comfort Letter (BCL), MT199, and MT799. We’ll cover how they work, where they fit in the transaction lifecycle, and which one is right for your deal.
What Is Proof of Funds?
Proof of Funds is any document or communication from a bank confirming that a client has the financial capacity to meet a contractual obligation. It doesn’t mean the funds are blocked or reserved — it simply shows they exist and are accessible.
Common Uses for POF
- Trade Finance: To show a seller that a buyer has capital before shipping.
- Project Finance: To confirm the sponsor has liquidity to start or co-finance the deal.
- Real Estate: To prove purchasing power in negotiations with sellers or developers.
Instrument Overviews
Bank Comfort Letter (BCL)
A BCL is a soft confirmation from a bank stating that a client is in good standing and believed to have the resources to complete a transaction. It is non-binding and typically used early in negotiations.
MT199
The MT199 is a general, free-format SWIFT message. It’s often used to send a simple POF message bank-to-bank. It’s informal but direct — used when a buyer wants to show funds exist but isn’t ready to issue a guarantee.
MT799
This is a more formal and binding SWIFT message, often used in trade finance and SBLC transactions. An MT799 confirms readiness of funds and is taken seriously by counterparties. Many banks or suppliers will only ship or issue instruments after receiving an MT799.
Comparison Table
| Instrument | Nature | Common Use | Strength |
|---|---|---|---|
| Bank Comfort Letter (BCL) | Non-binding, soft assurance of client strength | Real estate, early-stage trade or project deals | Low |
| MT199 | Informal SWIFT message confirming funds | Initial trade discussions, internal compliance | Moderate |
| MT799 | Formal SWIFT POF message with firm intent | Required in SBLC, DLC, or performance-based deals | High |
Which Instrument Do You Actually Need?
- Just starting the conversation? Use a BCL or MT199 to establish credibility.
- Need to trigger action? Use an MT799 — it's respected, verifiable, and serious.
How Financely Can Help
We provide real POF support for serious deals. Whether you need a BCL for a real estate transaction, an MT199 to begin talks with a counterparty, or an MT799 to secure a trade deal — we can issue, draft, or coordinate it.
We work with institutional partners, private banks, and regulated providers to ensure everything is clean, compliant, and understood on both sides of the transaction.
Need a Real Proof of Funds Instrument?
Let us issue, structure, or coordinate your BCL, MT199, or MT799 through compliant, recognized channels. We help you make your deal fundable and verifiable.
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