Gone are the days when people were used to carrying money around or. Thanks to civilization and the establishment of banks, money can now be kept in a very secure place with professionals caring for it. This development has drastically reduced the volume of money people carry around every day.
More, most societies have adopted a cashless policy, which limits the amount of liquid money that can be circulated for transactions and other activities in such societies, replacing it with such technologies as cheque transfers, digital transfers, and a host of others.
While this is a great development with many advantages, it has also made the process of establishing trust between two intending business partners a little more difficult. Considering the fact that buyers do not move around with liquid cash anymore, sellers might sometimes find it difficult to believe that an intending buyer can afford to close a deal, and as such, they become skeptical about the deal, and sometimes do not even see the need to invest their time and energy into such deals.
With bank proof of funds, however, the intending buyer could be able to prove that he has the monetary capacity to close the deal and also demonstrate his willingness to close the deal, thereby making it easier for sellers to trust them and confidently carry on with the deal.
What Is Bank Proof of Funds
A bank proof of fund can be said to be a document that is issued by a bank to demonstrate a business person’s or party’s financial capacity to finish a particular transaction. The proof of fund often contains the monetary value of the intending buyer in a particular bank. It is aimed at proving that the needed funds to execute a specific transaction is legitimately owned and accessible to the owner, as well as to convince the sellers that he has the financial power to close the deal.
What Does the Bank Proof of Funds Contain
Some of the necessary things that should be contained in a bank proof of funds document includes; bank details, money market statement, copy of a financial statement from the bank, official bank statement, online banking statement, signature and information of an employee from the bank who has been authorized, among others.
How to Get and Show Your Bank Proof of Funds Document
Here are some simple steps to follow if you want to obtain a proof of funds document from your bank for a transaction:
Inform your bank about the transaction when you begin
Request for a proof of funds document
Attach a couple of your previous bank statements to the document
Show the proof of funds document to the seller, alongside your offer documents.
Establishing trust between sellers and intending buyers can indeed be difficult sometimes, but with a bank proof of funds, things are made easier. We have discussed some important things you should know about banks proof of funds in this article.