The Importance Of Proof Of Funds In Securing Deals

Oftentimes a buyer takes property or a product off the market in the hopes that the client who they have already discussed with is coming to make the payment, and more often than not, the buyer never pulls through with the deal. Thus making the seller lose more important buyers who would have paid at first meet.

Because of this, sellers now require proof of funds. Proof of funds tells the seller that the person who is buying has the financial capability to make the purchase, thus assuring them that the deal will pull through.

While this seems like it is of a higher advantage to the seller, it is also of advantage to the buyer as well. This is because, there have been cases where the seller does not believe the buyer can make the payment, because words of mouth are not usually enough, so they go on to sell to another buyer. This will give the buyer credibility and make sure the deal stays on track until payment is made.

Proof of funds makes sure there is no disgruntled party at the end of the day. It makes sure everyone gets what they want and there are no complains.

Here are a few reasons why getting proof of funds when securing a deal is important.

It establishes credibility: Saying “I will buy it” is no longer enough. There needs to be more assurance when a deal is on the table.

There is a chance that when the buyer walks away, that deal goes off the table and lands right on the lap of a competitor. The proof of funds puts the buyer on a pedestal that says that they are capable of making payments. The deal remains on the table until payment is processed.

It saves time: The amount of time spent wondering if the buyer will make payments or not could be used to find other buyers, or start preparing the documents to make sale if the proof of funds is available. It saves the seller the impending disappointment that might happen if the buyer along the line is not able to afford the payment.

It establishes legitimacy: The proof of funds does not only show that the buyer is financially capable of making payment for the deal to pull through, it goes forward to prove that the funds are legitimate.

Most people are wary about getting into business with shady people, the one way to find out if the funds are legitimate is to obtain proof of funds.

Before you shake hands on a deal, either as a seller or a buyer, ensure you are establishing credibility between you and the other person by obtaining a proof of funds. This saves you a lot of trouble and disappointments eventually.

 It would be a lot better to have all the processes involved in closing a deal taken care of before shaking hands, and one of these processes is the obtaining of proof of funds.