Proof of Funds, sometimes referred to as a POF, is a
financial document, usually a statement or letter, which shows one party to the next there is financial capability and funds available to complete a given transaction. It is most often provided by the account holder's bank in the form of a bank letter specific to the transaction in question. The bank letter assists the inquiring party with confidence there is cash funds available, that they are obtainable and legitimate.
A POF may also be used in the preliminary stages of credit enhancement when applying for financing or attempting to engage a party for several purposes including, but not limited to acquisitions of
businesses, materials, equipment, automobiles, real estate, REOs, as well as banking instruments and financial instruments.