If you're involved in international business, you know that trust is essential. When you're dealing with partners and suppliers in other countries, it's important to be able to demonstrate that you have the financial resources to fulfill your obligations.

One way to do this is to provide a proof of funds letter (POF).

A POF is a document that verifies that you have the necessary funds to complete a transaction. It is a common requirement for international trade, real estate, and other high-value deals.

POFs can be issued by banks, financial institutions, or other reputable third-party providers.

Benefits of Using a Proof of Funds Letter

There are a number of benefits to using a POF in international business, including:

• Increased trust and confidence: By providing a POF, you can reassure your partners and suppliers that you have the financial means to complete the transaction. This can lead to stronger relationships and more favorable deals.
• Reduced risk: A POF can help to reduce the risk of fraud and other financial problems. If you are unable to produce a POF, your partner or supplier may be more likely to back out of the deal or ask for additional security.
• Faster transactions: A POF can help to expedite the transaction process by demonstrating that you are ready and able to pay. This can be especially beneficial for time-sensitive deals.

Types of Proof of Funds Letters

• MT199
• MT799
• Bank Comfort Letter (BCL)
• Soft Probe

A soft probe is a type of POF that is used to verify the availability of funds in a bank account without actually moving the funds. Soft probes are typically used in low-risk transactions or when the other party needs to verify the existence of funds before proceeding with a transaction.

To request a soft probe, you will need to provide your bank with the following information:

• The name and account number of the account to be probed
• The amount of funds to be probed
• The name and contact information of the person or entity requesting the probe

Once you have provided your bank with this information, they will contact the account holder to verify the availability of the funds. The bank will then issue a letter or certificate to the requesting party stating that the funds are available.

Soft probes are a convenient and efficient way to verify the availability of funds without actually moving the funds. This can be helpful for both buyers and sellers in a variety of transactions.

Which Type of POF is Right for You?

The type of POF that is right for you will depend on the specific needs of the transaction and the requirements of the other party. If you are unsure which type of POF to use, you should consult with your financial advisor.

Here are some general guidelines for choosing a type of POF:

• If you are involved in a high-value transaction, you may want to consider using an MT799 or a soft probe to provide the other party with additional assurance of your financial resources.

If you are unsure which type of POF to use, you should consult with us.

How to Get a Proof of Funds Letter

To obtain a POF, you will need to contact a bank, financial institution, or other reputable third-party provider.

The provider will typically require you to provide some basic information about your transaction, such as the amount of funds required, the purpose of the transaction, and the beneficiary's name and address.

The provider will then work with you to obtain the necessary POF. This process may take a few days or weeks, depending on the complexity of the transaction and the provider's requirements.

Using a Proof of Funds Provider

There are a number of benefits to using a proof of funds provider, including:

• Convenience: Proof of funds providers can make it easy to obtain a POF. You can simply submit a request online and the provider will take care of the rest.
• Speed: Proof of funds providers can typically provide POFs within a few days or weeks.
• Competitive rates: Proof of funds providers offer competitive rates on their POFs.
• Expertise: Proof of funds providers have a team of experts who can help you with all aspects of the POF process.

How Financely Can Help

Financely is a proof of funds provider that can help you to obtain POFs for your international business transactions. Financely works with a network of banks and financial institutions to provide its clients with the best possible terms and rates.

To obtain a POF from Financely, simply visit the website and submit a request. Financely will then work with its network of banks to obtain the necessary POF on your behalf. Financely can also help you to obtain POFs on behalf of third parties.

If you need a POF for your international business transaction, Financely can help. Financely offers a convenient and fast way to obtain a POF at a competitive rate. Financely also has a team of experts who can help you with all aspects of the POF process.

Additional Information

Here is some additional information about POFs and how they can be used in international business:

POFs can be used for a variety of purposes, including:

• To secure a contract
• To initiate a buyer/seller relationship
• To confirm readiness, willingness, and ability (RWA) to proceed
• To obtain financing
• To comply with government regulations

POFs are typically required for international trade transactions involving large sums of money. This is because international trade can be risky and banks and other financial institutions need to be sure that they are dealing with reputable partners.

POFs can also be required for real estate transactions, mergers and acquisitions, and other high-value deals.

When choosing a proof of funds provider, it is important to consider the following factors:

• Reputation: Choose a provider with a good reputation and a track record of success.
• Experience: Choose a provider with experience in handling international business transactions.
• Rates: Compare the rates offered by different providers to get the best deal.
• Services: Choose a provider that offers the services you need, such as the ability to obtain POFs on behalf of third parties.
• Customer support: Choose a provider that offers good customer support in case you have any questions or problems.

Here are some tips for using a proof of funds letter in international business:

• Provide the POF to your partner or supplier as early as possible in the negotiation process. This will help to demonstrate your seriousness about the deal and build trust.
• Make sure that the POF is valid and up-to-date. POFs typically have a validity period of a few weeks or months.
• Be prepared to provide additional documentation to support the POF, such as bank statements or financial statements.
• If you are using a proof of funds provider, make sure that you have a signed service agreement in place. This will protect your interests in case there are any problems.

Proof of funds letters are an important tool for international business. By providing a POF, you can reassure your partners and suppliers that you have the financial resources to fulfill your obligations.

This can lead to stronger relationships and more favorable deals.

If you need a POF for your international business transaction, Financely can help.

Financely offers a convenient and fast way to obtain a POF at a competitive rate. Financely also has a team of experts who can help you with all aspects of the POF process.