The reason for sending a proforma invoice to a potential customer is that it is?

A.

an indication of the seller's willingness to grant credit

B.

a polite way of telling the customer to return the goods

C.

an invitation to the buyer to buy on hire purchase

D.

a polite way of refusing to sell on credit

Correct answer is D

A proforma invoice is an estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges.

pro forma invoice is generally raised when the seller is ready for dispatching the goods but they want to ensure that the payment is being sent before dispatch.