Proof of Funds Letter (Format & Sample)

Before making large purchases such as those of homes and cars, you no doubt have to prove that you have the money. That requires you to draft a letter to that effect. This letter is called the ‘proof of funds letter.’ It is drafted by a bank and directed to the seller of the expensive commodity. In most cases, it is accompanied by bank statements and other financial verifiers.

How to Write a Proof of Funds Letter

Knowing how to write this letter is no doubt a significant step to take towards reaping the fruits it potentially brings along. We now devote this segment of our discussions to just that:

Step 1: Check the Account of the Client

Start off by checking the account details of the person whose funds you are to verify. Simply skim the database of the affected person and see to it that the outstanding balance is equal to or greater than the one that is being asked for. Only proceed if the precondition is satisfied.

Step 2: Verify other Commitments

It could be that the client has more than enough money in his bank account at that time but has to meet other financial engagements as well. If that is the case, the available balance might never be possible to cover this commitment you are after. In that sense, you might decline the verification altogether.

Step 3: Jot the letter

Now get down to the serious business of jotting the letter. Needless to say, you have to use the formal tone and structure to draft the letter. This is a very serious letter ordinarily. Also, use the official letterhead of the institution on whose behalf you are drafting the letter. Then:

  • Provide the date and the subject
  • Specify the branch of the institution on whose behalf you are drafting the letter
  • State the subject of the letter explicitly
  • Specify the name of the account holder
  • Mention any limitations, if at all they exist, in the letter
  • Spell out the validity period if it applies to this kind of verification

Step 4: Sign the letter

As always, you have to sign the letter to give it the official character it deserves to be deemed overall binding. Accompany this signature with the official date in which the letter is drafted and is to be referenced in the future. Close it with your designation like “Loan Administrator” or “Assistant Vice President” etc.

Step 5: Notarize the Document

Some jurisdictions may require that the letter is notarized as well over and above merely signing and dating it. Find out whether yours indeed require it. Go ahead to do just that before submitting the same to the requesting authorities.

Proof of Funds Letter (Format)


To whom it may Concern

This is to certify that ________ (name of the company or individual concerned), indeed has _________________ (sum of money) on this date ____________ (mm/dd/yyyy).

We further confirm that these funds are completely devoid of any liens, claims, or debts and are also available in the forms of ____________ (specify the denomination).

Kindly reach us on XXX-XXX-XXXXX for any clarifications on the matter.

Truly yours,

Accounts Manager

Sample Proof of Funds Letter

Proof of Funds Letter – Equity Bank Incorporated



First Mortgage Solutions,

Reference: Jeremy Bryson

Account Number: 154988369

Account Name: Jeremy Bryson

Account Signatory: Jeremy Bryson


Dear Sir,


We, Equity Bank Incorporated, located at 6200 NW 63rd Terrace, Kansas City, Missouri, hereby vouch for the existence of six thousand, seven hundred and eighty-nine dollars ($6,789.00) in the above-specified bank account.

In addition to that, we confirm that the funds are completely free of any liabilities, debt, claims, liens, or other forms of encumbrances attached to them. Further to that, the funds we earned legally and the account itself has never been under the radar of the investigative authorities for any suspected criminal acts.

In case of any issues, kindly reach us on +1-816-587-4322.


Mr. Gerald Stevenson,

Equity Bank Incorporated.

Sample Letter (Word Format)

What to include in a Proof of Funds Letter

Though these letters vary significantly in scope, they contain some unifying contents. Below are some of the things that a typical ‘proof of funds letter’ has to contain:

  • Bank’s Name and Address. The name and the address of the banking institution that holds the requested funds should come in first. This is to make it plain who exactly is processing the funds. Such a piece of knowledge is also crucial when the time for making any references arise later.
  • Official Bank Statement. An official bank statement naturally follows this letter. It is this statement that vouches for the availability of the funds in the bank account. All the facts and figures in the letter have to be reflected in the statement for consistency.
  • Copy of Money Market Statement and Balance. Some account holders may have more than one account with the stated financial institution. If and when this exists, they too have to be taken good care of. The information concerning these additional bank accounts also ought to be provided for, if need be.
  • Bank Certified Financial Statement. The pieces of information that are provided for by the bank have to be certified to make them attain the official character they are supposed to have. This certification ideally ought to be carried out by an official preferably from the state.
  • Copy of an Online Banking Statement. If the bank dispenses its services via the online platform, it should also issue a copy of an online banking statement to back the records it produces to vouch for the account balance. The purpose of this is to lend more credence to the information provided.
  • Signature of an Authorized Bank Employee. It goes without saying that the documents have to bear the signatures of the authorized bank employees. These signatures have to be accompanied by the designations of the banking officials. The two are the final proof that the letter or statement is indeed official.

Mistakes to avoid in a Proof of Funds Letter

Mistakes are naturally bound to arise while drafting this letter. In this segment, we look into some of these mistakes as well as the ways and means to avoid them:

  • Insufficient Funds. The number one mistake people make is to request verification yet there are insufficient funds in the account to vouch for that in the first place. In this case, the verification does not serve its purpose and is hence rendered null and void by the requesting company or entity.
  • Non-disclosure of all Information. It could be that there are sufficient funds no doubt, but all the pieces of information that pertain to such funding are not supplied as need be. In this instance, the requesting entity will usually demand that they be furnished fully before any subsequent course of action may be taken in pursuance of it.
  • Lack of Applicable Verifications. These documents have to be verified before the same is finally accepted as a bona fide. Sometimes, they lack this appropriate verification. If and when this happens, they are rendered null and void up to the extent to which they lack the verification. They are often returned for the same before proceeding.
  • Untimely Actions. Everything has to happen within a stipulated timeframe. That is because the necessary pieces of information are bound to fluctuate with time. Thus, even if all the necessary pieces of information are furnished and the document verified but all these happen after time, the document will still not serve its purpose.
  • Use of Unofficial Papers. For this document to be deemed official, it has to be drafted on the official letterhead of the issuing bank. Yet again, it may lose its official character if any other paper is used to draft it. Thus, it is important that everything is well taken care of to avoid ambiguities.


To do a better job at writing your funds for ‘funds verification letter’ there are things you have to care for. Below are some of the tips we recommend that you adhere to:

  • Save and start doing so quite early. This is by far the most preferred avenue of raising such funds. Take advantage of your savings to earn some extra income by way of interests.
  • Dispose of assets like homes, buildings, and cars and then use the proceeds as your fund or startup capital. Exercise some caution here though as it is generally not recommended that you part with your assets purely for raising capital.
  • Make use of provident funds like your pensions and retirement benefits. These funds are nonetheless limited in their scope and degree of efficacy as they are only available to the elderly persons who have already exited the workforce.
  • Sell scrap metals, pieces of furniture, or other things that you no longer need or have less use of. These are by far the best avenues for raising capital as these items may still have to be disposed of anyway.
  • Borrow if you must and especially if you have no alternative means of raising the funds. While at it, prioritize your friends and relatives as they are safer. Also, see to it that you negotiate favorable interest rates and terms of references.

Final Thoughts

We bring our look into the proof of funds letter to an end there. Having done our part, we are now pretty confident that you have what it may take to appreciate this letter well and make good use of it.