About the Proforma Invoice
A proforma invoice is a quotation prepared to resemble a commercial invoice. It is used to arrange a letter of credit to pay for the goods or, if needed, to arrange financing for the purchase. If done correctly, and if an order results, the final commercial invoice will closely resemble the proforma invoice.
Tips for Using the Proforma Invoice
- A proforma invoice will likely be the first document you create in your exporting process.
- The proforma invoice is not required documentation—but it is very useful when quoting letter of credit payment terms.
- By correctly completing your proforma invoice and making sure details like sales terms, product descriptions, and pricing are clear, you can avoid making costly changes.
- A proforma invoice should be valid for a specific period. A reasonable time should be allowed for the buyer to respond, after which the proforma invoice is no longer valid.
