The Proof of Funds document has become more critical than ever as many Nigerians are deciding to migrate abroad. People who want to relocate abroad for study, work, or business, will have to present this document for their visa processing. Fortunately, the quality Proof of Funds service providers in Nigeria have made it easy for the average Nigerian to access it. If you want to learn how to get Proof of Funds in Nigeria, read through the subsequent paragraphs.
What is Proof of Funds (PoF)?
Proof of Funds is primarily a document or evidence, typically in the form of a bank, custody, or security statement that indicates that an individual is capable of covering the expenses for a stipulated period of time. It is generally in the form of documentation that affirms that a person or organization has enough money to complete a transaction.
As a prospective expat student, your proof is the document that shows that you have an adequate chance to maintain your schooling in future years. It also signifies that you have enough liquid assets to pay for all your schooling year costs to acquire the intended college/university degree.
Why is Proof of Funds (PoF) Important?
Proof of funds documentation is generally used during various transactions or business situations. Here are everyday situations that can warrant a Proof of Funds document:
1. Immigration Applications
Generally, immigration authorities ask their applicants to provide proof of their financial capacity to support themselves throughout their stay abroad or while migrating to a new country. For instance, people traveling to Canada from Nigeria for work or study will need to get their proof of funds for processing their visa. This is one of the most popular reasons people need POF in Nigeria.
2. Real Estate Transactions
POF can be used to verify that a real estate buyer has the necessary funds to finish the transaction. So usually, real estate sellers or their representatives demand a buyer’s proof of funds documentation.
3. Investment Opportunities
Proof of funds can also be needed to verify an investor’s financial ability when investing in certain opportunities such as business purchases or private placements.
4. Loan Applications
This document is also essential when determining a borrower’s capability to make down payments or to pay off closing expenses. Lenders in Nigeria are likely to ask for proof of funds from the borrowers when it involves a huge amount.
5. Creating a Trust
Creating a trust account may also require that you provide proof of funds to reveal the initial funding or your continuous financial ability to operate the trust.
6. Business Transactions
POF is necessary in order to verify the financial competence of the partakers involved in business partnerships, mergers, or acquisitions.
7. Contract Bidding
When taking part in contract bidding procedures, especially for government or large-scale projects, proof of funds may be needed to show the financial capacity to meet the criteria of the contract.
8. Business Licensing
To guarantee financial viability and compliance with the business regulatory criteria, proof of funds may be demanded when applying for different business licenses or permits.
9. Auction Participation
Proof of funds may be essential when partaking in auctions to indicate your capacity to satisfy bidding requirements or the different payment obligations.
10. Franchise Opportunities
When considering buying a franchise, your proof of funds may be demanded to show your financial capacity and suitability as a franchisee.
11. Private Sales
In high-value transactions or private sales, sellers may demand proof of funds to ensure that the buyer has the funds required to finish off the transaction. This may be related to industries like real estate or other top industries like art or collectibles.
Check Out: Proof of Funds Providers in Nigeria
How To Get Proof of Funds in Nigeria
You can get proof of funds in Nigeria with the following steps:
- Find a trusted proof of funds provider
- Open a new bank account
- Pay an interest fee
- Get your account funded
- Use your new account
- Print your bank statement
1. Find a proof of funds provider
The first thing you need to do in obtaining your proof of funds is to find a proof of funds provider. This involves you searching for a reputable company or service that offers proof of funds, which is a financial document demonstrating that you have access to a certain amount of money. From my experience, it can be such a hassle looking for reliable providers but no worries, LoanSpot is one such provider that can assist with obtaining a proof of funds document. Click here to get started.
2. Open a new bank account
If you wish to use your current bank account, you might be required to transfer your account to the provider’s designated bank. Otherwise, you will need to open a new bank account. This account should contain the funds you intend to use as proof, and it typically needs to be in your name or the name of your business.
3. Pay an interest fee
This fee is often a percentage of the total amount you’re using as proof of funds. Some providers, like LoanSpot, may require you to pay an interest fee for using their services or for maintaining the funds in the bank account you opened.
4. Get your account funded
After opening the bank account, you’ll need to deposit the required funds into it. These funds will serve as the basis for your proof of funds document and should match or exceed the amount you intend to prove you have access to. On the LoanSpot platform, you can get millions of Naira as your proof of funds in no time.
5. Use your new account
After getting your account funded, make sure you start using it immediately. The bank account you opened, with the deposited funds, can now be used for various financial transactions. Have money put into the account, like your monthly salary, or have friends and family deposit money into the account.
6. Print your bank statement
This statement should show the account balance and transaction history for the relevant period, confirming the availability of the funds. Ensure that your bank statement bears both a signature and an official stamp. It’s crucial to avoid the error of printing it starting from the date your account received its funds. To prevent any potential setbacks, please print a full 30-day bank statement.
Discover the hassle-free path to securing your proof of funds for your Nigerian travel. While there are countless methods, many can be quite challenging. However, LoanSpot offers a straightforward and effortless solution. Take the first step toward ease – Click here to begin your journey.
Disclaimer: You can only obtain your Proof of Funds through LoanSpot. LoanSpot doesn’t directly provide Proof of Funds to customers, our primary role is to connect individuals to access their proof of funds.
How Long Does It Take to Get Proof of Funds (POF)?
The duration it would take for you to get your Proof of Funds primarily depends on the bank you are getting it from. However, most authorized Proof of Funds providers in Nigeria will process your request and disburse within 24-48 hours. You should ensure that the contact information provided on your POF letter is up-to-date.
What are Some Proof of Funds Alternatives?
Listed below are some other options you can use in place of a Proof of Funds:
1. Scholarship letter
Admissions on scholarships, mainly fully funded scholarships that will cover a student’s living expenses, have a lot of edges over those that are not fully funded. People receiving financial support from a scholarship agency are free to attach an authorized scholarship letter that clarifies the amount and terms of the award.
Also, organizations sponsoring scholarships can easily provide a statement that reveals they have the necessary amount presently available. However, for scholarships that are not fully funded, it’s a different ball game entirely. Students may have to show visa officials that they have money or a promise of cash to pay off the remainder of that expense that is not covered by their scholarship.
2. Sponsors’ account
When it comes to submitting a PoF with the intention of traveling abroad, many Nigerians believe that it just has to do with their personal account. However, this is not entirely true as you can also use your Sponsor’s account.
Basically, the importance of the statement of account submitted as proof of funds is to indicate that a student can cover basic costs while studying in their preferred country. For this reason, students planning to study abroad do not need to have the mandated POF lump sum in their bank account if they already have a sponsor who has the required amount of money in their account.
Sponsors, preferably someone with close relations such as one’s parents or siblings, will have to write a letter elucidating why they are ready to invest in the student’s education and evidence of relationship with the applicant.
3. Study loan
Students who apply for loans from organizations and prominent platforms that offer loans to international students can also present the study loan letter written by the loan company in place of a PoF. However, students involved in this must understand the terms and conditions proposed by any loan platform or company they are dealing with. Students should also read through the terms and conditions of the study loan to ensure they meet them. In most cases, the terms and conditions will demand that students have a creditworthy cosigner or be enrolled for half-time at a qualified school.
Generally, lenders that do need a cosigner consider the prospect of the borrower. For instance, some lenders may consider a student’s career path and earnings potential before they qualify for a student loan without any collateral or cosigner.
Also, students who are on half scholarship fees can easily apply for study loans to cover the remaining part of their expenses.
4. Gift Deed
Gift Deed is another good option that is almost like using a sponsor’s account. A gift deed serves as documentary proof of the act of gifting.
In this situation, if a family member or friend sends a lump sum of money into your bank account or will property to you before you get your statement of account, you have to write an explanation attributable to your benefactor which assures the Visa Officer that the cash was gifted to you for proper reasons.
Students who already have sponsors that are their close relatives like a parent or sibling, don’t need to present a gift deed since their sponsorship letter and a bank statement will be assessed.
5. Defer admission
This is generally the last option to consider, especially when other alternatives are not viable. Admission can be deferred till the next year or the next two years. This is to allow prospective students to build their bank accounts and save up to the mandatory amount.
Conclusion
While the POF statement is generally issued by a Nigerian POD provider to give assurance to the Visa Officer, it is still very crucial for you to use the legal way to get your Proof of Funds. Doing this will prevent you from ruining your chances of getting a visa. When it comes to getting your POF, you can always trust LoanSpot. Above, we’ve explained how to get Proof of Funds in Nigeria through LoanSpot. Follow the guide provided to receive yours in no time.
