Posted by Michelle/AL on 12/27/06 9:37am
Msg #167823

Can I pick your brain? Proforma Invoice

What type of industries use Proforma Invoices? Have you been asked to complete this type of invoice in the past? If so, by whom? When I Googled "performa invoices" I get the impression that this has to do with import/ export business.

This morning I received an email from a business (located in CA - I believe) telling me that they were recommended to me by someone I did some notary work for in the past. Their request reads like this: "Below you will find a proforma invoice with the full details of our first order. Please sign and send back to us by fax or email: proforma(underscore)invoice.doc".

Well the atached invoice has font so tiny that I can't even read it with a magnifying glass. It's a "thumbnail". I tried enlarging - no good.

When I tried contacting the business by phone, it appears that the number has been disconnected. Before I call the person who supposedly referred this company to me, I wanted pick your brains. I realize this could be bogus but I want to make sure.

Thank you.

Reply by James H. Lissemore on 12/27/06 10:30am
Msg #167827

A proforma invoice is an invoice sent out prior to rendering servies. Used mainly as a cash with order meathod. I used them selling custom printing to accounts that did not have credit approval. in my case we would not start printing until we received payment.

Reply by Michelle/AL on 12/27/06 10:47am
Msg #167830

Thanks, James.

I just can't figure out why they would want me to prepare such a document for notary services? Perhaps it's something they are used to using with other vendors. I finally found a working number for this company and left them a vm.

Reply by Susan Fischer on 12/27/06 4:30pm
Msg #167881

Maybe they want to pay up front? n/m

Reply by Charles_Ca on 12/27/06 6:30pm
Msg #167903

Hi Michelle: Import/Export businesses also use a "sight draft" which needs to be notarized. If you are in a busy port of entry there is a lucrative sideline in doing pro-forma invoices and sight drafts for shipments coming into ports of entry: most shipments are consigned Point of Destination as opposed to free on-board. Point of destination means that the vendor or vendors agent is responsible for the shipment until it arrives at its destination. When the shipment is off-loaded from a ship it usually goes into a bonded warehouse so that it can be held by a disinterested third party (like an escrow) until paid for. A sight draft is created by a bank upon confirmation of the arrival of the shipment at the bonded warehouse. At the point of transfer the demand is notarized so that it can be honored with the sight draft. Unfortunately you have to be careful. I do a number of these and I have had requests for my personal account numbers for depositing funds. The tip-off is that scammers ask for your PERSONAL account numbers while the real users just need to know that you have a surety bond and a discrete account for their funds so that they don't get co-mingled.