At a certain stage in the buying process, we always ask business buyers for Proof of Funds. This establishes the path to payment for the business they are seeking to acquire. Here’s what to know about our process for Proof of Funds (POF).
1) Why do I need to prove funds?
Before meeting with an owner or having your offer presented to an owner, we require proof of funds from all prospective buyers to ensure they are financially qualified to move forward with an offer to purchase.
2) How much do I need to prove?
You are trying to secure a meeting with the business owner, and the business owner is considering multiple buyers, so it’s in your best interest to prove as many funds as possible. At a minimum you’ll need to prove funds to cover the selling price or a down payment if financing if offered.
3) What does “proof of funds” look like?
Most prospective buyers provide proof of funds in the form of a screenshot of a bank statement. It can be taken from your mobile device or computer, or a scan of a paper version. Please block out any sensitive information like account numbers. We can also accept a letter from your banker or investment manager stating that you have sufficient funds to purchase or you are “pre-approved” to finance the business you are pursuing.
Thank you for respecting our processes. They are designed for a smooth transaction for both the buyer and the seller!