Understanding Proof of Funds for Online CRE Auctions
When you register to bid for a property in an online commercial real estate auction on LoopNet, one key step is to provide proof of funds.
This is a necessary step to demonstrate that you, as a potential investor, have the necessary funds to back up your offer.
Our bidder qualification process also gives our owners and brokers the confidence that they are attracting serious, qualified investors to their listings-resulting in an average closing rate of 96% for auction properties under contract.
What is proof of funds?
Proof of funds (also referred to as POF) is a document or other means of demonstrating that an individual or an entity has enough liquid funds to complete a property purchase.
Proof of funds is used for large, all-cash real estate transactions in order to confirm that the buyer is legitimate and has the cash to execute the sale. We require up-front proof of funds in our online commercial real estate auctions, but you may have also heard about proof of funds being necessary to purchase a home or even being requested on visa applications or as an anti-money laundering measure.
Proof of funds can come in many forms including letters from financial institutions, bank statements, or certified financial statements.
Regardless of the form that the proof of funds comes in, it's important to remember that the funds in question must be liquid capital. Mutual funds, life insurance, shares, bonds, and proof of other assets will not qualify.
What is the difference between a proof of funds letter and a pre-approval letter?
While these two terms may sound similar, they are not the same.
As stated above, a proof of funds letter demonstrates that a prospective buyer has the liquid funds to complete a transaction. It will state the amount that you have available for the property purchase.
A loan pre-approval letter, on the other hand, states that a prospective buyer has been pre-approved for a loan. This letter will indicate the amount of money that the lender is willing to lend for the purchase.
You will likely need to provide proof of funds in order to receive a loan pre-approval. Loan pre-approval letters may be able to serve as a form of proof of funds in some select cases. Read our Frequently Asked Questions section for more information about when this might apply.
Why do I need to provide proof of funds?
Proof of funds demonstrates to the seller and the auction platform that you have sufficient capital to complete the transaction and cover all associated costs.
Providing upfront proof of funds also indicates serious intent. By only approving bidders who have provided sufficient proof of funds, LoopNet ensures that each property listed for auction has a pool of qualified, motivated bidders-bringing greater confidence to sellers and brokers and reducing the risk of fallouts after the auction.
Proof of funds is also used to set your bid limit (the highest value at which you can place a bid) for LoopNet auctions. Your bid limit will be set at 10% above the amount of your approved proof of funds.
How to provide proof of funds
If you plan to participate in an auction on LoopNet, you can provide proof of funds by securely linking a bank account with Stripe.
Liquid funds must be available immediately and without restriction.
What is Stripe?
Stripe is an online payment processing and financial solutions provider for businesses worldwide. Online auction providers use Stripe to give potential investors a quick and secure way to provide proof of funds with real-time updates.
How to link an account through Stripe to provide proof of funds
You can use Stripe to link a bank account when you register to bid. Keep in mind that you need to sign in to your LoopNet account or register for one before you can register to bid on a property.
Once you've entered the bidder registration process, this is how to register to bid:
- Click "Connect" when in the Proof of Funds section of the form.
This will be the fourth section of the process, after confirming your contact information, providing details for the contract, and adding any additional properties.
- Select your banking institution and enter your bank login credentials.
This will be shown in a Stripe pop-up.
- Choose which account(s) you would like to connect.
You will see a list of your accounts with the banking institution you selected. You can link one account or multiple.
- Click "Done" to close the pop-up.
You will see a success message confirming that your account has been linked.
- Confirm and complete bidder registration.
You will see your accounts, their current balance, and their connection status listed on the bidder registration form.
Frequently Asked Questions About Proof of Funds
Are there any other ways I can provide proof of funds?
Stripe is our recommended method for proof of funds. However, you can also manually upload one or more of the accepted proof of funds documents, or you can use a combination of linked accounts and uploaded documents.
What proof of funds documents are accepted?
LoopNet's online auctions currently accept:
- Bank account statements
- Brokerage account statements
- Letters from financial institutions stating the account balance
The following proof of funds may also be acceptable under certain conditions:
- Loan pre-approval letters can be acceptable only if indicated in the sale listing description, and only when utilizing appropriate lending channels
- A line of credit may be acceptable only if it is already in place, has undrawn capacity, and can be funded immediately without approval from the bank
How do I upload proof of funds documents?
You can upload proof of funds documents in the Proof of Funds section of the bidder registration form.
- Log into your LoopNet account.
- Visit the Listing Details Page (LDP) for the property you'd like to bid on and click the red "Register to Bid" button.
- Navigate through the bidder registration form until you reach step 4 of 5, which is Proof of Funds.
- Scroll past the Stripe section to the second proof of funds option, which will prompt you to upload your documents.
- Accept the Participation Terms to complete the registration process.
What information should be included in proof of funds documents?
Your documents should include details such as:
- The bank or financial institution's name and address
- An official bank statement
- Your balance of funds
- A signature from bank personnel
- A verified date
Keep in mind that your documents should also be recent. For the best results, try to provide proof of funds that is no more than 90 days old.
How long does it take for my proof of funds to get approved?
Proof of funds provided through a bank account linked with Stripe will be approved almost instantaneously. Stripe will provide account balance updates in real time, so you will always have an up-to-date balance.
Proof of funds documents uploaded manually are typically approved within 48 hours.
When is the deadline to provide proof of funds?
You must register to bid and receive approval prior to the start of the auction event if you would like to participate. Because providing proof of funds is an essential step in the bidder registration process, you must get your proof of funds approved before bidding begins.
For this reason, linking a bank account with Stripe is our recommended method of proof of funds. This method will allow you to have your proof of funds approved almost instantaneously, reducing the risk of missing your bidding window due to a lack of proof of funds.
What is the recommended timeline for gathering proof of funds?
For the smoothest, most efficient bidding experience, we recommend that you submit your proof of funds and receive approval prior to the auction's opening. Each property will be listed on LoopNet for at least 45 days prior to auction day. Using this time to manage your proof of funds will reduce your chance of encountering any last-minute bidding issues related to your proof of funds.
If you use Stripe (our recommended method), you can minimize the amount of time needed for submission and approvals. Linking an account with Stripe takes just a few moments, and you can receive approval near-instantaneously. Any updates made to the balance of a linked account will automatically update in real time.
If you do choose to provide proof of funds documents, keep in mind that this does take extra time. We recommend that you allot at least 48 hours for your proof of funds to be approved after you submit them. If you will be making any bank transfers, make sure to account for bank hours in your time calculations.
Overall, we encourage you to take care of your proof of funds as early as possible.
What happens if I need to change my proof of funds after I've already registered to bid?
Once you've registered with your initial proof of funds, you can update your documentation at any time before the auction begins. If you're using Stripe, your funds are automatically updated in real-time. For manual uploads, you can submit additional documentation through your account dashboard to increase your maximum bid limit.
If you've already been approved to bid but want to raise your bid limit, you can still log in to your account and upload additional proof of funds any time before the bidding period ends. You can even upload additional proof of funds or link new accounts during the auction.
Can I register for multiple auctions with the same proof of funds?
You can use the same proof of funds for multiple auctions, but you'll need to show that you have sufficient funds to cover your maximum potential bid for each property.
For example, if you're interested in two properties and plan to bid up to $1 million on each, you'll need to show proof of funds for $2 million.
How should I manage my proof of funds if I am using them for multiple auctions?
As long as you have sufficient funds available (through linked accounts, recently uploaded documents, or a combination of the two) for each auction you plan to participate in, you will not need to do anything additional.
If you have linked a bank account with Stripe, the balance of funds will update in real time. If you wish to increase your bid limit or add more funds, just add funds to the linked bank account.
If you uploaded proof of funds documents, they will be good for 180 days. If you would like to add more funds, you will need to upload new documents (and receive approval) or link an account with Stripe.
As of 2025, we have expanded our auctions to weekly rather than every other week. Now, your proof of funds can be applied to twice as many auction events as before.
Do I need any special documentation if I'm registering on behalf of my company?
Bidders wishing to use entities will be required to upload entity formation and authorization documents along with bank account information for proof of funds. These documents can easily be uploaded on LoopNet during the registration process, and the necessary documentation will be listed in our bidder registration form.
If you are purchasing a property under an entity, be aware that the entity must be duly formed and in good standing. Additionally, the person signing as the buyer must have the necessary authority to do so.
If the entity is not yet formed, not active, or not valid, then you will need to register and sign as an individual, and then assign to the entity in escrow (unless otherwise directed by the Purchase & Sale Agreement).
How long does my proof of funds last?
Manually uploaded documents will expire after 180 days. You will need to re-upload proof of funds documents and receive approval, even if you have already provided proof of funds from that financial institution.
Bank accounts linked in Stripe will update their balance in real time and will not expire or need to be re-linked, unless you have previously un-linked this account.
Will my proof of funds be secure?
Yes, we take diligent measures to ensure that the information on your proof of funds will be kept secure.
Stripe uses best-in-class data practices to maintain a high level of security. Your login details, account information, and other sensitive data will be encrypted, and no one at LoopNet will have access to those details.
To avoid any potential scams or fraud, be sure to only provide proof of funds or financial information in our secure bidder registration form.
Can I remove a linked account?
Yes, you can unlink a bank account from Stripe at any time by logging in to your LoopNet account and navigating to your buyer dashboard, where you can see and manage your linked accounts.
I am registering to bid from outside the United States. Is there any difference in how I provide proof of funds?
No, you can still link a bank account with Stripe or upload proof of funds documents as per our typical process. However, your proof of funds must be in the US dollar (USD).
Keep in mind that if your bank does not have a US branch, you will need to provide a $100,000 USD performance deposit in addition to your proof of funds. This deposit will be fully refunded if you are not the winning bidder, and will be used for your earnest money deposit (EMD) if you are the winning bidder. You can read more about it in our guide to international bidder registration.
