What it is for
A proforma invoice is a quote in the shape of an invoice. The factory states what it will make, at what price, on what terms, and where the money should go. Nothing has shipped and nothing is owed.
It matters because in this trade it is usually the only written record of what was agreed before money moves. There is often no signed contract — there is a WeChat conversation, a specification sheet and a PI.
What to check before paying against one
- The bank details against the company name. The account holder should be the company on the licence. A personal account, or an entity in another jurisdiction with a different name, is the most common shape of a payment-diversion attempt.
- The payment terms, written out. "30/70" means nothing until it says what triggers the 70 — shipment, inspection, or documents.
- The specification. Colour, material, tolerance, packaging. A dispute six weeks later is argued from this document.
- Whether it changed. A revised PI arriving after you have approved one is worth reading line by line rather than assuming the change is the one you asked for.
Why it is not a receipt
A proforma invoice records an intention, not a transaction. If you need something for your own accounts, or for customs, that is the commercial invoice, issued once the goods exist.