A proforma invoice for advance payment is a preliminary invoice issued before goods or services are delivered or rendered. It is a request for advance payment, commonly used in international trade, and serves as a placeholder for the final invoice once the transaction is complete.
Proforma invoices are crucial for businesses as they help secure advance payments, reduce payment delays, and streamline accounting processes. Historically, proforma invoices were handwritten or typed documents, but with the advent of technology, they are now commonly created and sent electronically.