#proectfinance

🔐 In the world of international trade, trust is everything — and trust needs proof.

Whether you're sourcing raw materials, closing a commodity deal, or importing finished goods, your counterparty will almost always ask one critical question before the deal moves forward:

"Can you actually pay for this?" 💬

That's where a Proof of Funds (POF) comes in.

📌 WHAT IS A PROOF OF FUNDS?

A Proof of Funds (POF) is a formal document — issued by a bank or financial institution — that verifies a buyer or importer has sufficient liquid capital to complete a transaction.

It is not a promise to pay.

It is not a guarantee.

It is simply evidence that the funds exist.

🏭 REAL-WORLD USE CASES

↳ Commodity Trading (Oil, Gas, Grains, Metals, etc.)

A buyer looking to purchase 50,000 metric tons of wheat from an exporter must demonstrate POF before the seller will even share a soft offer (SCO).

↳ Large-Scale Import Contracts

An importer bringing in $10M worth of construction materials from China will need to show their supplier — and any freight/logistics partners — that the capital is available before production begins.

↳ Government & Infrastructure Procurement

Bidders on government tenders for infrastructure projects (roads, ports, energy) frequently must submit POF alongside technical proposals.

🏛️ HOW TO OBTAIN A POF (INCLUDING WHEN YOUR BANK WON'T ISSUE ONE)

Ideally, your own bank issues the POF — this is the gold standard. It's clean, verifiable, and accepted universally.

But what if your bank won't issue one — or your liquidity is tied up in other assets?

Here are your options:

🔹 Private Lenders & Trade Finance Firms — Specialist trade finance houses can issue or back a POF against collateral, receivables, or structured deals.

🔹 Collateral-Backed POF — Real estate, commodities, or securities pledged as collateral can support a POF from a financial intermediary.

🔹 Monetization of Bank Instruments — Assets like bank guarantees or Standby Letters of Credit (SBLC) can be monetized by certain institutions to produce a POF.

🔹 Joint Venture / Investor Backing — A strategic investor or JV partner with verified liquidity can co-issue or support your POF.

🧩 ASSOCIATED TRADE FINANCE INSTRUMENTS

A POF rarely works in isolation. Here's the broader ecosystem of instruments we can assist you with:

Letter of Credit (LC)

Standby Letter of Credit (SBLC)

Bank Guarantees (BG)

Performance Bond

Blocked Funds

Bank Comfort Letter (BCL)

Advanced Payment Bond

Ready, Willing & Able (RWA)

Bid Bonds

Supplier Credit to Buy Goods From China

Opening of Business & Personal Bank Accounts

💡If you're navigating a cross-border deal and need clarity on structuring your documentation — let's connect. 🌐