What Is A Proof Of Funds Statement?

What Is A Proof Of Funds Statement?

Periodically a depositor, usually a company, will be asked to provide a seller of goods or services that they have sufficient funds available to pay for the purchase. A proof of funds letter is one which is issued by the bank which indicates to the seller the name of the account, the account number, the balance and little else. As the proof of funds letter is not a bank statement there is no demand to indicate an opening balance and transactions.

There are times when it is necessary to perhaps buy time during negotiations or to enhance the balance sheet of the company. It is possible to do this by leasing money. These Swift capital funds are deposited into the account of the buyer and then blocked by the bank. The funds are not available for use but it does allow the buyer to show the seller that there is money in the account. These funds are normally “leased” short term, 15 days or 30 days is normal at which time they revert to Swift capital funds and the client pays a fee for the use of the funds. The amount that can be arranged can go as high as ten billion dollars if necessary, all of which is debt-secured, cash backed.

There are companies who are in business to do nothing but capital funding. There are many reasons why this is, they may deal exclusively within one area of commerce or specialize in a certain form of funding, perhaps short-term only. A good example of those who provide capital funding are venture capitalists who usually only work within a certain set of guidelines such as IT, assisted living facilities, etc.

There are a number of valid business reasons for needing a cash collateral account. Swift capital funds are used for credit enhancement, minimum net worth requirements, real estate transactions and commodity trading. As the funds are blocked by the bank and are not available for use there is minimum paper work involved, there is usually no need for a credit check or any form of financial statement. The funds sit in the account under the clients name and the service is paid for by a negotiated fee. To know more, visit Swift Capital Funds today!

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