What is POP (Proof of Product)?
Proof of Product (POP) is the set of documents a seller provides to show that the commodity being offered actually exists and that the seller has the right to sell it. It is the seller-side answer to the buyer's proof of funds.
At a glance
| Term | POP (Proof of Product) |
|---|---|
| Definition | Seller's evidence that the commodity exists and is allocated for the buyer. |
| Category | Deal flow & documents |
| Related terms | LOI (Letter of Intent), ICPO (Irrevocable Corporate Purchase Order), FCO (Full Corporate Offer), SGS Report |
What it is used for
Buyers ask for POP before committing money or opening a payment instrument. Depending on the trade it can include an inspection report, certificate of origin, tank or warehouse receipts, an allocation or refinery commitment, or title documents.
Key points
- Commonly includes a recent independent inspection report covering quantity and quality.
- May include certificate of origin, storage or tank receipts, and evidence of allocation from the producer.
- Should be recent — a certificate from a previous cargo proves nothing about this one.
- Is normally exchanged under a confidentiality agreement, because it exposes the seller's supply chain.
What to watch for
- Full POP is rarely released to an unverified buyer, and refusing to release it early is not by itself evidence of fraud.
- Documents circulate: check that dates, quantities and vessel or tank references match the cargo actually being offered.
- Verify inspection certificates with the issuing inspection company rather than trusting a forwarded PDF.
Frequently asked questions
What documents count as proof of product?
There is no fixed legal list. In practice: a current inspection report, certificate of origin, storage or tank receipts, and evidence of the seller's allocation or title.
Should a seller send POP before the buyer sends proof of funds?
Both sides are exposed, so a simultaneous exchange through verified counterparties or an escrow-style process is the usual compromise.
Can POP be faked?
Yes, and it frequently is. Always verify certificates directly with the issuer and verify the company itself before relying on any document.
Related terms
Lodfy verifies every company on the platform — registration, ownership and sanctions screening — before they can trade.