Proof of Funds
A document that establishes a person has the funds available for a specific transaction. A proof of funds document is intended to ensure that the funds needed to carry out the transaction are accessible.
- Example : Vinny offers to purchase Peggy’s home using all cash, without needing to obtain a mortgage. Peggy requests that Vinny provide proof of funds with the executed contract. Vinny signs the contract and sends it back to Peggy with a copy of his recent bank statement.