Proforma Invoice is a Document Which is Prepared by airSlate SignNow for Seamless Transactions

Understanding the Proforma Invoice

A proforma invoice is a document which is prepared by a seller before the delivery of goods or services. It serves as a preliminary bill of sale and outlines the details of the transaction, including the items or services provided, their quantities, and agreed prices. This document is often used in international trade to provide buyers with a clear understanding of the costs involved.

Unlike a traditional invoice, a proforma invoice is not a demand for payment. Instead, it is a way to inform the buyer about the expected costs and terms of sale. It can also be used to facilitate customs clearance and to help buyers secure financing or budget for the purchase.

Key Components of a Proforma Invoice

When preparing a proforma invoice, it is essential to include specific information to ensure clarity and transparency. The following components should be present:

• Seller Information: Name, address, and contact details of the seller.
• Buyer Information: Name, address, and contact details of the buyer.
• Description of Goods/Services: Detailed descriptions of the items or services being sold.
• Quantities and Prices: The quantity of each item and the price per unit.
• Total Amount: The total cost of the transaction, including any applicable taxes or fees.
• Payment Terms: Information on how and when payment should be made.
• Delivery Terms: Details about shipping methods and expected delivery dates.

How to Create a Proforma Invoice with airSlate SignNow

Creating a proforma invoice using airSlate SignNow is a straightforward process. Users can quickly prepare and send a proforma invoice by following these steps:

1. Log in to your airSlate SignNow account: Access your account to begin the document preparation.
2. Select the Document Type: Choose the option to create a new invoice or use a template.
3. Fill in the Details: Input the necessary information, such as seller and buyer details, item descriptions, quantities, and prices.
4. Review and Customize: Ensure all information is accurate and customize the layout if needed.
5. Send for eSignature: Once the proforma invoice is complete, send it to the buyer for their signature.

Benefits of Using a Proforma Invoice

Utilizing a proforma invoice offers several advantages for both sellers and buyers:

• Clarity: Provides clear terms of sale, reducing misunderstandings.
• Budgeting: Helps buyers plan their finances by outlining expected costs.
• Facilitates Transactions: Streamlines the purchasing process, especially in international trade.
• Legal Protection: Serves as a record of the transaction details, which can be useful in case of disputes.

Common Use Cases for Proforma Invoices

Proforma invoices are commonly used in various scenarios, including:

• International Sales: To provide buyers with a detailed estimate before shipping goods.
• Customs Documentation: To assist in customs clearance for imported goods.
• Project Estimates: To outline costs for services in project-based work.
• Budget Approval: To help clients secure budget approvals before finalizing purchases.