A document or bank statement that demonstrates that a person or a company has the ability and the funds to finalize a transaction. Its purpose is to confirm that the financial ability required for the transaction is procurable and legitimate. It is often used for funding projects that require large amounts of money to invest in, specifically real estate transactions.
By issuing a proof of funds, the bank approves that the entity or person has the quoted funds or facilities available with them. During the finalization of a transaction, the applicant presents the Proof of Funds to the beneficiary, providing them assurances that the buyer has the where with all to participate in the transaction.