A great deal of initial export transactions are generated from inquires placed by international buyers overseas. These product or service inquiries lead to a request for a quotation. When giving a quotation, a pro forma invoice (a quotation formatted like an invoice) is prepared by the seller.
Pro forma invoices are the preferred method of quotations in the exporting business. Quotations typically include the buyer’s and seller’s contact information, a description of the product, the product’s price, the currency of sale, and the estimated shipping date.
A pro forma also details your company’s terms of sale and terms of payment. Additional information such as insurance and shipping costs, packed for export dimensions and shipping weight are also detailed.
Pro forma invoices have a validity period for the quotation and are not used for payment purposes. The foreign buyer may use these pro forma invoices when arranging for funds, opening a line of credit or applying for an import license.
