Proforma Invoice for Trade
When to issue a proforma, what it should contain, and how it relates to the commercial invoice that follows.
Short answer: A proforma invoice is a preliminary, non-binding invoice a seller sends before shipment, setting out the goods, prices, currency, Incoterm and payment terms on offer. Buyers use it to approve the purchase, open a letter of credit, apply for an import licence or pay an advance. The commercial invoice replaces it once the goods ship.
- Issued by
- Seller / exporter
- When
- After enquiry, before the order is final
- Binding?
- No — it's an offer, not a demand for payment
- Used for
- LC opening, import licence, advance payment, internal approval
- Followed by
- Commercial invoice
What it is
A proforma invoice is a preliminary quote. It tells the buyer what you intend to sell, at what price, under which terms. It is not a demand for payment.
Buyers use it to apply for import licences, arrange letters of credit, or get internal purchase approval. Once the deal is firm, you issue a commercial invoice for the actual shipment.
Required fields
Clearly label it as a proforma. Include seller and buyer details, description of goods, quantities, unit prices, currency, proposed Incoterms, payment terms, and validity or quote expiry if you use one.
Optional but useful: estimated ship window, packaging notes, and bank details for LC drafting. Mark that values are indicative until the commercial invoice is issued.
Common mistakes
Calling a commercial invoice a proforma (or the reverse) so the buyer or bank misreads the document’s role. Letting the commercial invoice diverge from the proforma without a documented change — quantity, price, or Incoterms shifts that surprise the LC.
Omitting Incoterms on the proforma, so the LC is opened on terms you did not intend.
How it must match other documents
The commercial invoice should follow the proforma unless both parties agree to a change. Under an LC opened on the basis of the proforma, goods description, amounts, and terms on later documents must fit what the credit allows.
Packing lists and transport documents then follow the commercial invoice — the chain starts with a clear, consistent proforma.
How Bilexor helps
Store the deal once and convert a proforma into a commercial invoice without retyping. When details change, update the shipment record so downstream documents stay aligned.
Informational only — not legal, banking, or customs advice. Confirm the final set with your bank or broker before presentation.
Frequently asked questions
Is a proforma invoice legally binding?
No. It's a preliminary quote, not a demand for payment. The commercial invoice issued once the shipment is firm is the binding bill.
Can I skip the proforma and go straight to a commercial invoice?
Some smaller or repeat deals skip it. Larger buyers, import licence applications, and LC-based financing usually expect a proforma first.
Informational only — not legal, banking, tax, or customs advice. Always verify document and LC requirements with your bank, CHA / customs broker, and buyer before presentation.