The deal · 02
Proforma invoice
A priced offer that looks like an invoice. The buyer uses it to approve the deal, open an LC or send an advance.
- Proforma no.
- PI/0007 — 01 Jan 2099
- Seller
- Sharma Agro Exports, Indore
- Buyer
- Al Noor Foodstuff LLC, Dubai
- Product
- Turmeric fingers, double polished, 25 kg bags
- Quantity
- 12,000 kg (one 20 ft container)
- Price
- USD 1.00 per kg CFR Jebel Ali
- Payment
- Irrevocable LC at sight
- Shipment
- Within 30 days of LC receipt
- Valid until
- 31 Jan 2099
- Issued by
- The exporter, before the order is final
- Used in
- Exports and imports
Why it matters
It fixes price, quantity, Incoterm, payment terms and delivery date in writing before anyone spends money. Many buyers' banks need it to open a letter of credit or release an advance.
What goes on it
- Words “Proforma Invoice”, number and date
- Product, specification, packing and quantity
- Price, currency and Incoterm with named place
- Payment terms and your bank details
- Shipment date and validity of the offer
Avoid these mistakes
- Always write a validity date. Freight and raw-material prices move.
- Put only your company's own bank account on it, and confirm any change of account with the buyer by phone.