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International Trade vocabulary · Quotations and Orders

Proforma invoice

Meaning in international trade, with examples

/proʊˈfɔːrmə ˈɪnvɔɪs/nounCore term

In international trade, proforma invoice means: A preliminary invoice sent before shipment that shows what the final invoice will contain, so the buyer can arrange payment, an import permit or a letter of credit.

In Turkish: proforma fatura, ön fatura

How it is used

Sellers issue a proforma invoice (PI) after the price is agreed. It is not a request for payment in the accounting sense, but buyers often make advance payments against it and banks use it to open an L/C. Also spelled pro forma or pro-forma.

Example sentences

  1. Could you send us a proforma invoice so we can open the letter of credit?

  2. The proforma invoice shows a 30 percent advance and the balance before loading.

Common collocations

  • issue a proforma invoice
  • send a proforma invoice
  • proforma invoice number
  • against the proforma invoice
  • quotationA written statement from a seller giving the price, quantity, delivery and payment conditions for goods a buyer is interested in.
  • commercial invoiceThe seller's final bill to the buyer for the goods shipped, showing the description, quantity, price and terms of sale; customs uses it to calculate duties.
  • advance paymentMoney the buyer pays before the goods are produced or shipped, either the full amount or part of it as a deposit.
  • letter of creditA bank's written promise to pay the seller a set amount, provided the seller presents documents that meet the exact conditions of the credit within the stated time.

More terms: Quotations and Orders

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