POF vs POP: who gives what, and how to verify it
By the Vanguard Verify desk · Published 2026-10-24 · Updated 2026-10-24
Short answer: the buyer gives proof of funds (POF); the seller gives proof of product (POP). Neither should be handed over until the other side has been identified as a real, registered company. Good POF and POP can be confirmed directly with the bank, terminal or producer that stands behind them.
What each one is
| POF (proof of funds) | POP (proof of product) | |
|---|---|---|
| Given by | Buyer | Seller |
| Shows | The buyer can pay for the volume offered | The seller owns or controls the goods, or has a real allocation |
| Typical forms | Bank reference or letter on letterhead, recent statement extract, readiness to open an LC confirmed by the bank | Warehouse or tank storage receipt, producer allocation letter, title document, independent inspection report |
| Verified with | The buyer’s bank, via contacts you source yourself | The terminal, warehouse, producer or inspection company directly |
| Strongest form | A documentary LC actually issued by the buyer’s bank | Goods inspected and loaded, with a carrier-issued bill of lading |
Safe order of steps
- Identify both companies first. Look up each legal entity in its official registry and in the GLEIF LEI database. Confirm it is active and in the right line of business.
- Agree basic terms (product, specification, quantity, price, Incoterm, payment method) before exchanging sensitive documents.
- Exchange POF and POP in proportion. Share what is needed, not full bank statements or account numbers. Redact what the other side does not need.
- Verify, do not just read. Call the bank, terminal or producer using contact details from their official website, never those printed on the document.
- Move to bank-to-bank instruments. In real deals, POF is replaced by an issued LC and POP by inspection and shipping documents.
Red flags
- A seller asking for your POF, bank details or “bank comfort letter” before proving the seller exists.
- A buyer asking for POP but refusing to show who it is.
- POP that cannot be confirmed by the named terminal, or a terminal that will not confirm the seller as its client.
- Fees for “dip tests”, “tank verification” or “injection” paid upfront to a private account.
- POF that is only an MT799 “pre-advice” or a screenshot.
- Documents in the name of a third party who is not the contracting company.
Related: is an MT799 proof of funds? and how to verify an SGS report.
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FAQ
Does the seller give POF?
No. The buyer gives proof of funds (POF). The seller gives proof of product (POP).
Should I send my full bank statement as POF?
Avoid it. Share only what is needed, ideally a bank letter or LC readiness the counterparty can confirm with your bank, and only after verifying the counterparty.
What is the best proof of product?
Proof that a third party you can contact independently will confirm: a terminal or warehouse receipt, a producer allocation, or an independent inspection report verified with the inspector.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.