Pro forma invoices - what they are and when to use them

• Cash flow challenge: Customers often ask for an upfront invoice before confirming an order, but I’m not sure how to provide one without confusing it with a standard invoice.

• Perfect for: Businesses that sell goods or services in advance, need to provide quotes with legal clarity, or trade internationally.

Novuna helps businesses issue the right invoice at the right time while supporting cash flow with tailored funding solutions. We compare providers and ensure you have access to the financial tools that keep your business running smoothly.

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What is a pro forma invoice?

A pro forma invoice is a preliminary bill of sale sent to a buyer before goods or services are delivered. It outlines the details of a transaction but is not a demand for payment. Instead, it serves as a commitment to supply and provides the buyer with all the information needed to make a purchase decision.

How pro forma invoices differ from standard invoices

• Not legally binding for payment - a pro forma shows intent, not obligation

• Issued before delivery - unlike regular invoices, which come after goods or services are supplied

• Used for clarity - helps the buyer understand costs, quantities, and terms upfront

• Does not affect accounts - because it’s not considered an official financial record

When to use a pro forma invoice

• International trade - pro formas are often used for customs clearance and shipping documentation

• Upfront agreement - when a client needs confirmation of costs before placing an order

• Complex projects - to outline stages of work, costs, and terms before starting

• New customers - where upfront clarity helps build trust before credit terms are agreed

Benefits of using pro forma invoices

• Builds trust with new clients

• Reduces disputes over pricing or scope

• Speeds up decision making for large or international orders

• Keeps both buyer and seller aligned before work begins

Example layout for a pro forma invoice

Pro forma invoice:

From: [Your business name, address, contact details]
To: [Client name, address]

Invoice Number: PF001
Date: [DD/MM/YYYY]

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How Novuna Business Cash Flow helps

Issuing pro forma invoices is a good way to secure clarity with customers, but it does not guarantee faster payment. If late or slow payments impact your business, Novuna provides funding options like invoice finance and working capital solutions so you can keep moving while clients confirm and pay.