Euro Financiers Group

LEASED BANK PROOF OF FUNDS (POF)

What is Proof of Funds (POF)?

Proof of Funds (POF) is a bank letter or documentation that certifies that an individual, institution, or corporation has sufficient funds (money) to complete a transaction sent through the bank swift system. POF can stand only when it is send via the BANK PAID SWIFT SYSTEM using MT700, MT760, MT799, MT999 and MT103. A POF is typically issued by a commercial bank or custody agent to provide confidence or assurance to another party – typically a seller – that the individual or entity in question has sufficient funds to complete an agreed-upon purchase.

Every POF issued by a bank must be CONFIRMABLE and VERIFIABLE swift to swift.

Proof of Funds (POF) For Oil & Gas Buyer

Every responsible seller of crude oil wants to be sure that the buyer is financial buoyant and responsible to financially close the transaction without wasting time and putting the crude oil vessel at risk

POF always serves as a first hand payment guarantee for all Crude oil sellers and real estate developers all over the world.

The seller of crude oil or a piece of real estate will often request Proof of Funds from the buyer to hold it for them while they wait for the transaction to close. The POF is required because without it there is no certainty that the buyer will be able to complete the transaction. This poses a risk to the seller, as taking the crude oil off the market and then having the deal fall through would be a major setback.

Leasing Charges - Breakdown 6%

4.5% - face value/margin money, interest, processing fee, professional fee

1.5% - Consulting/Brokearge/Agents

Leaseing Duration of Stay (ge);

A. 90 days minimum (with possible Rolls and Extension)

B. 1 Year and 7 Days (with possible ROLLS and Extension)

IMPORTANT NOTES FOR LEASING POF

1. All payments are REFUNDABLE againist Non-Perfornance from EFG

2. EFG pays A Two Percent (2%) Non-Performance Penalty.