In competitive transactions, it is not enough to say that capital is available. Counterparties, sellers, brokers and lenders want to see concrete evidence that a buyer or sponsor has the resources to close. That is the role of a Proof of Funds (POF) letter. It confirms that cash or committed funding exists, in a form that can be checked and relied upon during negotiations.
For business acquisitions, commercial real estate transactions, trade deals and project financing, serious parties expect verifiable POF at an early stage. Providing a clear, credible letter signals that you are not testing the market casually. It shows that you have done the work behind the scenes to arrange liquidity or credit lines.
This guide explains what a POF letter is, the key elements it should contain, the main types of POF, and how businesses can secure verified documents that stand up to due diligence. It also outlines how Financely Group works with clients to arrange genuine, bank-verifiable POF through regulated partners for qualifying transactions.
Proof of Funds is an official confirmation that a person or business has access to a specified amount of money. The confirmation is normally issued by a bank or regulated financial firm, using information drawn from real accounts or committed credit lines. The document is addressed to a counterparty, broker, seller or adviser who needs to confirm that the buyer or sponsor is capable of funding a transaction.
Common situations where POF is requested include:
In each case, the core purpose is the same. A POF letter answers one question for the other side of the table: is there enough accessible money to proceed to serious negotiation and due diligence.
While formats differ between banks and lenders, credible POF letters share several core elements. These elements give counterparties enough clarity to take the document seriously, without exposing more confidential data than necessary.
In competitive sales processes or brokered transactions, sellers often receive multiple inquiries that never progress. A concise, verifiable POF letter filters you into the pool of serious buyers. It shows that you already have liquidity or credible funding sources behind you, rather than relying on vague promises of future financing.
Once POF is on file, counterparties are more willing to share detailed information and move toward heads of terms or purchase agreements. Lawyers, brokers and advisers are less hesitant to invest time on a party that has already demonstrated financial readiness. This can shorten timelines significantly compared to buyers who keep funding vague.
A buyer who can show verified liquidity or committed funding is in a stronger position to negotiate price, conditions and exclusivity. Sellers may accept tighter contingency clauses or reduced deposits when they feel confident that the buyer can close. In some trade or project settings, strong POF can also help secure more favourable payment terms or delivery schedules.
In financial services, trade, energy and infrastructure, counterparties are often required to evidence their ability to meet obligations before contracts are signed. This is driven by internal credit policies, anti-money laundering controls and regulatory expectations. A clear POF letter is one of the tools used to satisfy these requirements.
The right route to a POF letter depends on where your funds sit and how your transaction is structured. The options below cover the most common approaches.
Many companies obtain POF directly from their main bank. Relationship managers can issue a letter that confirms current balances or committed credit lines available for a stated purpose. Typically, you will be asked for:
In some deals, funding will come from private lenders rather than existing cash. In those cases, POF may be issued once the lender has completed initial underwriting and is comfortable providing a commitment in principle. The letter will explain that funds are available for a specific transaction, subject to final documentation and conditions precedent.
Reputable private lenders and credit funds will only issue POF once genuine credit approval exists. Any letter that suggests access to large credit lines without a clear underwriting path should be treated with caution.
Whether POF comes from a bank or a private lender, you should expect to provide documentation that backs up the requested statement. This may include:
POF letters should refer to funds that are genuinely available. If money is locked in restricted accounts, pledged as collateral, or subject to other claims, it may not qualify. The same applies to vague promises of third-party finance that have not gone through any credit process. Serious counterparties will ask direct questions and may seek confirmation from the issuing bank or lender.
| POF Type | Source | Typical Use and Considerations |
|---|---|---|
| Bank-Issued POF | Main operating bank or custody bank. | Confirms actual cash balances or deposits. Often regarded as the cleanest and most reliable form of POF, especially when issued on bank letterhead with direct verification contacts. |
| Broker or Lender POF | Private lender, credit fund or regulated broker. | Confirms access to a facility or credit line for a specific transaction. Depends on the credibility of the issuer and the strength of their internal credit approvals. Serious POF of this type is only issued after real underwriting work. |
| Escrow-Based POF | Escrow agent, law firm or regulated trust provider. | Confirms that funds are held in escrow for the benefit of a transaction. Gives sellers strong comfort that money is set aside, subject to agreed release conditions. Requires clear escrow agreements and strict KYC. |
Across sectors, POF letters show up in similar patterns. Examples include:
Many businesses struggle with POF because they are unsure which counterparties will accept which formats, and they encounter intermediaries who promise unrealistic or synthetic letters backed by nothing. That path leads to wasted time and reputational damage.
Financely Group focuses on POF that is grounded in real balances or real credit approvals. Through regulated partners and recognised banks, we assist clients in arranging letters that counterparties can verify, for qualifying transactions where there is a clear funding plan.
On suitable mandates, support can include:
The emphasis is always on clarity. Parties on the other side of the deal should be able to read the letter, verify the issuer and understand where the money is coming from if they dig deeper.
In contested sales processes, credible Proof of Funds can be the difference between being taken seriously and being ignored. It shows that you are prepared, that you have lined up liquidity or credit, and that you understand what is required to close a high-value transaction.
Financely Group works with clients that need verified POF for acquisitions, commercial real estate purchases, trade deals and project financing. By engaging early, you can align your funding plan and documentation with the expectations of sellers, brokers and lenders, instead of trying to scramble for POF at the last minute.
Share your transaction outline, funding plan and timelines with our team to explore verified Proof of Funds solutions through our regulated partners and banking relationships.
Request A Proof Of Funds ReviewDisclaimer: This page is for general information only and does not constitute legal, tax, accounting or investment advice. Financely Group acts as advisor and arranger through regulated partners and is not a bank or direct lender. Any Proof of Funds letter, financing structure or capital raising process is subject to underwriting, KYC, AML, sanctions screening, legal review, documentation, perfected security and approvals by relevant stakeholders. No public offer or solicitation is made on this page.
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestAccess non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestSecure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFinancely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue. See our FAQ and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.
Financely and its affiliates are not registered as securities broker-dealers and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
Click
here to download our brochure.
