What Does a Proforma Invoice Mean?
If you've ever worked with international clients, large projects, or buyers who need import approvals, you've probably come across the term "proforma invoice" (often just called a “proforma”).
Many freelancers and small business owners wonder:
“Is a pro forma invoice just another type of invoice? Do I get paid for it? Is it the same as a quote?”
Short answer:
No, a pro forma invoice is not a real bill for payment. It is a preliminary quotation or estimate that shows what the final invoice will likely look like once the work is done or goods are delivered.
This guide explains exactly what a pro forma invoice is, when to use one, how it differs from a regular commercial invoice, what to include, and how to create one quickly and professionally using free tools.
What Is a Proforma Invoice?
A pro forma invoice is a formal document sent by the seller (you) to the buyer (your client) before any goods are shipped or services are fully completed.
Key features:
It clearly states “PROFORMA INVOICE” at the top (this wording is mandatory to avoid confusion with a real invoice)
It shows estimated prices, quantities, terms, and totals
It is not a demand for payment — the buyer is under no legal obligation to pay based on a pro forma alone
It becomes binding only when the buyer accepts it, and you fulfil the order (then you issue a real commercial invoice)
Main purposes:
Helps buyers obtain import licences, letters of credit (LC), foreign exchange approval, or customs clearance
Allows sellers to request deposits or confirm large orders
Provides pricing certainty before work begins
Acts as a detailed quote in international or high-value transactions
When Should You Use a Proforma Invoice?
Use a proforma invoice in these common situations:
International Sales & Exports: Buyers in many countries need a pro forma invoice to apply for import permits, customs clearance, or bank letters of credit.
Requesting Deposits or Prepayments: You want 30–50% upfront before starting a big project (e.g., custom software, a full home renovation, or bulk product orders).
Large or Custom Projects: Scope or final pricing isn’t 100% fixed yet, but the client needs a formal document for internal approval.
Pre-Shipment Documentation: Freight forwarders, customs brokers, or insurance companies often require a pro forma.
B2B Corporate Clients: Many companies require a pro forma invoice before issuing their own purchase order (PO).
Do not use a pro forma when:
The work is already finished. → send a real commercial/tax invoice
You expect immediate full payment → proformas are not payment demands
Essential Elements to Include on a Proforma Invoice
Header — Large, bold “PROFORMA INVOICE” (critical — never omit or use “Invoice”)
Seller Details — Your business name, logo, address, phone, email, website, tax ID
Buyer Details — Client name, company, address, contact person
Proforma Number — Unique reference (e.g., PF-2026-001)
Date Issued — Today’s date
Validity Period — “Valid until [date]” (usually 30–90 days)
Itemized List — Description of goods/services, quantities, unit prices, subtotals
Totals — Subtotal, estimated taxes/shipping, grand total
Terms & Conditions — Payment terms (e.g., 50% deposit), delivery timeline, validity, notes like “Subject to final confirmation”
Bank Details — If requesting a deposit (account name, IBAN/SWIFT, etc.)
Clear Disclaimer — “This is a proforma invoice only — not a tax invoice or demand for payment."
How to Create a Proforma Invoice Quickly
Use the same free tools you already use for regular invoices — just label them correctly.
GenerateInvoice.net is perfect for this:
Pick any professional template
In the notes or custom header field, add large text: “PROFORMA INVOICE”
Fill in estimated items, quantities, and prices
Add validity date and “Subject to final confirmation” in notes
Include a deposit request if needed
Download PDF
Send with a short message: “Attached is the proforma invoice for your review, approval, and deposit if required. Let me know if you have any questions!”
Alternative free options:
Canva (search “proforma invoice template") ”)
Google Docs / Microsoft Word (free downloadable templates)
Wave or Zoho Invoice (mark as “quote” or “estimate”)
Quick Summary: What a Proforma Invoice Really Means
Proforma Invoice = Preliminary quote/estimate sent before work or delivery
Not a demand for payment — it’s a detailed offer
Used mainly for deposits, international trade approvals, and large project confirmation
Always clearly label “PROFORMA INVOICE”
Once work is done, issue a real commercial/tax invoice for actual payment
Need a pro forma right now? Head to https://generateinvoice.net, choose a template, add “PROFORMA INVOICE” prominently in the header or notes, fill in your details, and download the PDF — free, instant, and no signup needed for basics.