What is a Proforma Invoice and Why It Matters for Exporters
Jul 17, 2025
A Freightnaut Guide to Smarter Export Documentation
In the world of global trade, a strong start can make all the difference. Before any goods are packed or shipped, exporters and buyers must agree on the terms. This agreement begins with a Proforma Invoice a key document that sets expectations and builds trust. Freightnaut simplifies the entire process by helping exporters create, manage, and share professional Proforma Invoices in just a few clicks through the Freightnaut platform.
What is a Proforma Invoice? A Proforma Invoice is a preliminary document sent by the exporter to the buyer before the shipment. It looks similar to a commercial invoice, but it is not used for accounting or taxation. Instead, it outlines the full details of the proposed transaction, including:
Product names and descriptions
Quantities and unit prices
Delivery timelines
Shipping methods and Incoterms
Payment terms and currency
HS codes (if applicable)
It is essentially a formal quotation that ensures both sides are aligned before the actual shipment is processed.
Why Exporters Use Proforma Invoices Here are some of the key reasons why a Proforma Invoice is essential in international trade:
1. Buyer Agreement The buyer can review and approve all the terms before confirming the order, avoiding misunderstandings later.
2. Banking and Payment Many banks require a Proforma Invoice when issuing Letters of Credit or processing advance payments.
3. Legal Reference It serves as proof of the terms agreed upon if any issues arise later in the transaction.
4. Advance Payment Support It helps justify requests for advance payments by clearly presenting the goods and terms involved.
What Should a Proforma Invoice Include? A well-prepared Proforma Invoice typically contains:
Exporter and buyer information
Date and invoice number
Product list with quantities and prices
Total amount and applicable taxes or charges
Shipping method and estimated delivery
Incoterms and payment conditions
HS codes and currency type
How Freightnaut Makes It Easier Creating export documents does not have to be difficult. Freightnaut makes it simple, fast, and smart.
Your shipment details are auto-filled, so there is less typing.
All your documents stay connected — update once, and it reflects everywhere.
Smart suggestions help you fill fields faster using AI.
You can upload a file, and Freightnaut will pull the right data for you.
Download clean, professional PDFs in seconds.
Make edits anytime without starting over.
Everything is in one place on your Freightnaut dashboard — easy and ready when you are.
Conclusion: A Proforma Invoice is more than just a starting point. It builds clarity, creates trust, and supports faster decision-making. Whether you are confirming an order or preparing for payment, this document plays a vital role in your export journey. Freightnaut gives you the tools to handle it with confidence.
Create your Proforma Invoice today at app.freightnaut.com