How to Buy a Proof of Funds

How to Get a Proof of Funds Without Losing Your Money

Want to Buy a Proof of Funds?

It is admittedly not an easy task to find a real proof of funds that one can buy. Where do you start, the internet, a friend, a banker contact, a real estate broker, a hard money lender? I guess it depends why you are borrowing funds in the first place? You could ask yourself first the question, “Why do I need a POF?”

Why Do I Need Proof of Funds in the First Place?

The purposes for a POF usually boil down to two simple statements

  1. “I have to show money, but I don’t have it myself to show.”
  2. “I have to provide collateral but I don’t have it to give.”

For both of these scenarios people usually first look to conventional or private lending. But if banks are in trouble and getting bail-outs what do they think the rest of us are going through? A little bail-out to the rest of us could be nice.

Yes, business owners, entrepreneurs, developers, project visionaries, international traders, even small to medium governments are having real problems borrowing funds.

But borrowing funds from a bank or an investor, private or public, whether conventional or unconventional still require of you two basic things:

  1. Financial proof you are credit worthy
  2. A financial guarantee or security as collateral

In the proof of funds industry we say you need one thing for both of these scenarios- Credit Enhancement.

You Need Credit Enhancement Bank Proof of Funds

There are a couple of ways to get POF credit enhancement. You can go to an investor and ask them to joint venture with you so you can use their credit worthiness and financial assets.

However, if you do that you will be giving up likely 50% or more of your deal or project as compensation. You might also give up a lot of control of your project as well the future of your business.

Maybe a partner is the best answer if a) you have no money to do anything otherwise, or b) you have little experience completing a project or transaction like the one you are undertaking.

However, if do have some money, just not all of it, and you do have enough experience to go about a successful closing you might come out more ahead if you borrow or lease a proof of funds credit enhancement.

But, and this is a big BUT, in case you have not already heard proof of funds fraud is a real problem. People are getting scammed all of the time, loosing likely the last monies and credibility they had to complete their projects and dreams. It seems in times of weakness and financial uncertainty financial fraud becomes even more rampant.

How Do You Buy a Real Proof of Proof of Funds Without Being Scammed?

First, you can refer to the article here written about the various safeguards and safety precautions you should take when looking into getting a proof of funds service. We will summarize the 7 Points here.

How does one tell the difference between the scams and real proof of funds?

  1. If the cost for the service suspiciously low for a financial transaction of this nature? The old adage, “You get what you pay for,” rings true here.
  2. Is there transparency of who the investor or asset provider is? Dealing with parties who refuse to be upfront is trouble brewing.
  3. Can the proof of funds account be verified like a normal cash account or asset would be? Stay away from services that limit normal banking verification protocols.
  4. Can the service be verified electronically? We are in the Iron Age anymore, electronic bank verification is normal and expected for business today.
  5. Can you verify the account in person? Can more than one party verify it? If you are limited to only one way of verifying your account it may be because its not real.
  6. Does the format of the proof of funds letter or documentation differ from normal formats or procedures? People not familiar to banking use editing software to forge documents, often their format will not reflect normal banking formats or language.
  7. Do they require you to move money up front into a bank account before any verifiable service is to be completed? Don’t ever pay for something you have yet to receive, no matter what!

It is sad to say, but there are only a few handfuls out of the literally hundreds of proof of funds service solicitors on the internet that fail some or all of the above 7 safety protocols. Be smart and don’t let greed, stress, pressure, or laziness get the best of you. Be rational, respectful, and quick to use prudent judgement.

The Good News is you have foundĀ  Balboa Trade. We make sure our investors follow the above safety protocols or we don’t do business with them. We work hard to protect your interest, money, time, and credibility.

Now, you need to make sure you can follow some simple steps in order to make sure you can proceed on schedule with your deal. This is why you need a POF in the first place.

Steps for Borrowing Proof of Funds

We should probably just send you to the Balboa Procedures page at this time so you see what it is exactly you will need to do. But first read 4 Key Points you will need to keep in mind our asset holders require:

  1. You need money in order to get a real proof of funds. Likely 1.25% to 17% of the face value of your funds request.
  2. You need to place this money into a secure escrow account to show you have capability to pay the service fee; and thus give the investor confidence you will pay once the service is provided
  3. You need to pay that money before your deal closes for the proof of funds service- which is provided before your deal closes
  4. You may need strong banking relationships to back you up in the event you want to use borrowed assets as security or guarantees. The investor wants to ensure he will get their asset back on time without encumbrances.

While we admit getting a lease proof of funds is not for everyone, we believe it is a superior option to bringing partners into the game. However, as you can see in the items above, you still need to have some liquidity, accountability, ability to do some due diligence so you can trust whom your in business with, and finally have all of the moving parts of your deal pinned down before bringing in a proof of funds service provider.

Proceed to Proof of Funds Procedures

Contact Balboa Trade Here