Invoicing9 min readJanuary 5, 2024
Understanding Proforma Invoices: A Complete Guide
Master the concept of proforma invoices and learn when and how to use them effectively in your business transactions.
What is a Proforma Invoice?
A proforma invoice is a preliminary bill of sale sent to buyers before a shipment or delivery of goods. It provides a detailed breakdown of the items being sold, their prices, and other relevant terms, but it's not a demand for payment.
When to Use Proforma Invoices
International Trade
Essential for customs documentation and import/export processes.
Advance Payments
Request payment before goods are shipped or services are delivered.
Custom Orders
Provide detailed pricing for made-to-order products.
Budget Approval
Help clients get internal approval for purchases.
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