Proof of Funds Letter for Buying a Business: Examples and Template
What a proof of funds letter for a business acquisition should say, sample bank and CPA wording, how brokers evaluate it, common mistakes, and a free template.
A proof of funds letter is a short document from a bank, brokerage, or other financial institution confirming that a buyer has access to a stated amount of money. In a business acquisition, it usually supports the cash portion of an offer: the down payment on an SBA loan, the buyer’s share of a seller-financed deal, or the full price in an all-cash purchase.
This guide focuses on the letter itself: what it should contain, sample wording, how brokers read it, and the mistakes that cause it to be ignored. If you are still deciding what kind of evidence to provide at all, start with our overview of proof of funds for buying a business.
What a proof of funds letter should include
A broker or seller reading the letter is trying to answer one question quickly: can this buyer cover the cash they propose to contribute? A useful letter makes that obvious.
- Institution letterhead, with a phone number or contact the recipient could use to confirm authenticity.
- The account holder’s legal name, matching the name on the LOI or buyer entity documents.
- A statement that funds of at least a stated amount are available, or that the combined balance exceeds that amount.
- The type of funds, such as cash in deposit accounts or liquid securities.
- The date of the letter. Most recipients treat a letter older than 30 to 60 days as stale.
- The name, title, and signature of an authorized officer.
It generally should not include full account numbers, a transaction history, or anything beyond what the recipient needs. "At least $150,000" is often better than an exact balance.
Sample bank letter
Bank proof of funds letter
First Example Bank
Date: October 1, 2026
To whom it may concern:
This letter confirms that Jordan A. Lee maintains deposit accounts with First Example Bank. As of the date of this letter, the combined available balance in these accounts exceeds $150,000 (one hundred fifty thousand dollars).
This letter is provided at the request of our client for informational purposes only. It is not a commitment to lend and does not guarantee that funds will remain available.
Sincerely,
Taylor Morgan, Vice President, Private Banking
First Example Bank, (555) 010-0100
Sample CPA or wealth manager letter
Some buyers hold funds across several institutions or in a combination of brokerage and deposit accounts. A CPA or registered advisor may be willing to confirm aggregate liquidity. Recipients generally give more weight to a letter from the institution holding the funds, but a professional letter can work, especially paired with a bank letter for the largest account.
Advisor confirmation of liquid assets
I am the financial advisor to Jordan A. Lee. Based on account statements I reviewed dated September 30, 2026, Mr. Lee has liquid assets in cash and publicly traded securities with a combined value exceeding $250,000 held across accounts under his name.
This confirmation is not an audit and does not guarantee future availability of funds.
How brokers evaluate a proof of funds letter
Brokers are screening buyers before they release confidential information or invite offers. They are not underwriting a loan. In practice, they look for a few things:
| Question | What a strong letter shows |
|---|---|
| Is it real? | Letterhead, a reachable officer, and consistent formatting. |
| Is it current? | Dated within the last 30 to 60 days. |
| Is it the buyer’s money? | Name matches the buyer or buyer entity. |
| Is it enough? | Amount covers the down payment, closing costs, and a reasonable reserve. |
| Is it liquid? | Cash or marketable securities rather than retirement accounts with restrictions or real estate equity. |
For an SBA-financed $750,000 purchase, a broker might expect evidence of at least the minimum equity injection plus some cushion. Our guide to SBA down payment requirements shows how that amount is calculated.
Common mistakes
- Sending full bank statements with account numbers and transactions when a letter would do.
- Using a letter that is several months old.
- Providing a letter in a spouse’s or business partner’s name without explaining their role in the purchase.
- Showing retirement account balances without considering penalties, taxes, or plan restrictions on using those funds.
- Confusing proof of funds with a loan preapproval. They answer different questions; see proof of funds vs. prequalification vs. preapproval.
- Sending the letter before signing an NDA or confirming who will receive it.
Alternatives to a letter
Some buyers would rather not ask their bank for a letter for every inquiry. Verification services can confirm that a buyer’s connected accounts meet a stated threshold without sharing the underlying data. Our guide to showing proof of funds without sharing sensitive information compares the options.
On BuyerPass, buyers create a free profile. When a broker or deal owner requests proof of funds for a specific opportunity, the buyer can verify through a secure bank connection, and the broker sees whether the requirement is met, not balances, statements, or account numbers. A complete BuyerPass profile also shows your acquisition criteria and background alongside that result.
How much the letter should show
A proof of funds letter answers one question: can this buyer cover the cash portion of this deal? The amount that answers it depends on how the deal will be financed, so start from the structure rather than your total net worth.
| Financing approach | What the letter should cover | Illustrative amount |
|---|---|---|
| All cash | Full price plus closing costs | At least $1,030,000 |
| SBA 7(a) loan at the 10% minimum, with $100,000 of working capital and costs | Equity injection on total project cost | At least $110,000 |
| Conventional bank loan requiring 25% down | Down payment plus closing costs | At least $280,000 |
| Seller financing for 30% with a bank loan for 50% | Remaining 20% plus closing costs | At least $230,000 |
Notice that "at least" is doing real work. A letter stating funds "in excess of $250,000" is useful for a $230,000 cash requirement without revealing that you hold $900,000. Overstating your capacity invites a higher counteroffer; understating it gets you screened out. For SBA deals, see our guide to SBA down payment requirements to estimate the injection on total project cost.
Three common scenarios
A buyer with funds across several accounts
If your liquidity sits in a brokerage account, a savings account, and a money market fund at different institutions, one institution cannot attest to the total. You can request a letter from each, or ask a CPA or wealth manager who reviews all of them to issue a single letter. Brokers generally prefer one clear letter to three partial ones.
A buyer with an investor partner
If a partner is contributing part of the equity, the broker needs to know the partner's commitment is real. Provide a letter for each source, along with a short note explaining who will own what. A letter covering only your own share leaves an obvious gap.
A buyer who just sold a house or another business
Recent large deposits are normal after a sale, but expect questions. A closing statement or settlement document showing where the funds came from answers most of them, and lenders will ask for it anyway.
How to request the letter from your bank
Many banks will not draft an open-ended letter on request. It is faster to send the exact wording you need and ask for it on letterhead, signed by an officer or relationship manager with contact details for verification.
Request email to your banker
I am pursuing the purchase of a small business and the seller's broker has asked for confirmation of available funds.
Could you provide a letter on bank letterhead confirming that I maintain deposit and investment balances with [Bank] in excess of $[threshold] as of [date], and that the funds are available for my use?
Please do not include account numbers or exact balances. The letter can be addressed "To Whom It May Concern" and should include your name, title, and a phone number the broker can use to verify it.
Frequently asked questions
How recent does the letter need to be?
There is no universal rule, but a letter dated within the last 30 days is a common expectation in practice, and anything older than 90 days is likely to be questioned. Request a fresh letter when you submit an LOI.
Does a proof of funds letter replace lender approval?
No. It shows cash, not financing capacity. If the deal depends on a loan, pair the letter with a prequalification or term sheet. Our guide to proof of funds vs. prequalification vs. preapproval explains what each one tells a broker.
Can I write my own proof of funds letter?
A self-written letter carries little weight because nobody independent stands behind it. If you want to avoid both bank letters and statements, consider threshold verification, described in our guide to showing proof of funds without sharing financial information.
Who should receive the letter?
- Send it to the broker or seller who requested it, ideally after an NDA is signed.
- Avoid attaching it to general inquiries on many listings at once.
- Keep a record of who received it and when, so you know what is circulating.
Sources and references
Confirm transaction-specific requirements with your broker, lender, and advisors.
- CFPB: Prequalification letter vs. preapproval letter (opens in a new tab)Distinction between proof of funds, prequalification, and preapproval letters.
- BuyerPass: Buyer verification and privacy FAQs (opens in a new tab)How BuyerPass deal-specific verification presents results to deal owners.
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The BuyerPass Editorial team writes practical guidance for business buyers, brokers, and sellers. Articles are educational and are not legal, tax, lending, or investment advice.