It is a dream for each one of us to own an asset. Be it a car or a house, we tend to mortgage our existing property to obtain funds from a financial institution.
In this process, you may encounter the need to issue a proof of funds letter as issued by the bank where you hold an account.
Are you encountering this situation now? This article can provide you ample knowledge and also readily usable templates for your need.
Printable proof of funds templates
When you make a hefty purchase, you need to know how to draft a proof of funds letter and be wary of the financial processes involved.
This letter needs to be presented along with the bank statement and authorized signature from the banking institution.
1. Sample proof of funds letter
As a bank issues a proof of funds letter, it begins with the address of the bank followed by the account balance held by the applicant.
The term ‘line of credit’ is used to describe the fund status in the account. To be more accurate and legit, some banks tend to provide a background of the financial health of the applicant followed by the association of the applicant with the bank over years.
Simply download the following proof of funds letter template and customize it as you need just like a weekly reading log template.
2. Proof of funds letter with letterhead
When the bank issues the proof of funds letter, it needs to display authenticity. This can be done through a letterhead in the header and a stamp along with the signature.
The following template is extremely easy to use and all that the bank needs to include your name and the balance available similar to a free printable contractor invoice.
3. Printable proof of funds letter
If you are applying for a proof of funds letter as a business entity or if you are a new bank official issuing a letter to the account holder, you may need a standard, instructional template.
Following is an editable format that presents detailed information about the account and guarantees the lender to approve the request of the holder for the fund.
4. Fundraising letter template
While proof of funds letter is important to apply for loans, some organizations use it to raise funds from donors and then provide transparent proof of funds.
The idea is to strengthen the fund status of your organization so you can apply for grants at a later stage.
5. Balance confirmation template
Proof of funds letter sample is about confirming the balance in the account so that the authority can grant a loan to you.
To make things crisp here is a proof of funds letter template that indicates bank account details along with the amount in a letter format. When you use it, you may have to alter the header with your bank logo and contact information in the footer of this sample proof of funds letter, similar to these pdf budget proposal template.
6. Instructional proof of funds letter
If you are running a financial institution, you may need to follow a standardized format to provide free proof of funds to the holder.
It follows a traditional free proof of funds letter sample format and placeholders dedicated to the same.
When you download this template, eliminate the sample proof of funds letter placeholder by adding specific information like you would in a quickbooks direct deposit forms (here are some) and you are good to go.
7. Free Proof of funds status template
Here is a template that indicates the status of funds available for reserving for upcoming projects or loans in particular.
To enhance it further, you can include tags like strictly confidential and a watermark of the bank. There are a few key contents in a letter including funds to be cleared and funds blocked for usage.
All of these should be provided in this letter to process loan requests.
8. One-page bank sample proof of funds
If you are new to the concept of proof of funds, let us not make it look complicated. Read the contents in the following funds letter sample template and enter values as asked.
In general, letters are not always issues in capital letters. So, you may replace the same.
To further simplify your role, you can download and then ask the bank personnel to provide details in handwritten format.
9. Proof of funds description
Whether you are asked to provide sample proof of funds or you are providing one, you should always know the terminologies involved so you can use the template effectively.
To gain hands-on knowledge in this subject, the following editable POF document provides a gist on this proof nature along with supporting information so you know how things work.
Later, you can customize one of the POF templates above and use them appropriately.
Do’s and dont’s in proof of funds letter (POF)
As sample proof of funds letter (POF) holds huge value in banking transactions and approving a request legally, you need to be aware of mandatory procedures and common mistakes involved.
- A proof of funds letter holds invalid if you do not append a bank statement substantiating the amount mentioned in the letter. Verifying the authenticity of facts and figures is important.
- The signature of an authorized dignitary from the bank needs to be affixed in the letter. This is to maximize the trustworthiness of the information present in it.
- You need to know what information to disclose and what not to. In an aim to maximize transparency, it is inappropriate and discouraged to share sensitive information pertaining to the account in a POF.
- You, as a bank employee, should cross-check every detail with the internal record and provide a relevant statement. Sometimes, inappropriate or insufficient verification ends up in ethical violations that can hamper the reputation of the brand. Most importantly, provide an account verification letter confirmation to the account holder so that you take the informed consent and cross-check appropriately.
- While providing proof of fund, using an official paper is essential. A notary paper enhances POF professionalism and also asserts the truthfulness associated with the information. Never use an unofficial paper to provide the proof as it can be discouraged by other authorities.
Ways to increase proof of funds
If the line of credit is insufficient to take a loan, you can explore a few other ways to enhance proof of funds.
- Make use of your provident fund to obtain the loan and then use the time to improve your fund limit.
- If you are in a plan to raise funds, you may have to plan it at an earlier time so you can fetch additional income as well as be prepared for achieving the desired fund limit.
- You can also organize a garage sale to get some quick money and improve the fund value of your bank account.
- Last but not the least, you may try out to get money from your friends and family if there is an immediate need or if it is small-value money.
Proof of fund letters POF is highly valued as they influence the decision-making process of a financial institution. The key to providing a good line of credit is to plan earlier.
When you prepare the proof of fund letter, ensure that you go through every detail in it.
Alternatively, you may save your time and have some peace by using the trustworthy templates listed in this post. These are already in use by professionals and include every detail required to successfully complete the transaction. Before you go, you might want to check out these check requisition templates.