1. Quoting ….Shipping ….Getting paid
Presented By:
Kathy Edwards
Global Business Solutions
(cell)

2. What is a Proforma Quotation
An offer to sell
Exporter’s recommended
Price
Payment terms
Delivery
Method and terms of shipment

3. How is a Proforma Quotation used?
To communicate to your buyer
To obtain import license
To open letter of credit
To arrange for foreign currency

4. PRO FORMA INVOICE/ QUOTATION Global Business Solutions
No. 3856MI
InvoiceDate:
11/30/2014
Bill to:
Ship to:
USA Imports
Please Advise
PO Box 000
Istanbul
Turkey
Payment:
WHAT PAYMENT TERMS DO WE QUOTE?
Estimated Delivery:
Quantity
Description
Approx.
Carton
Total
300
cartons
US$ 60
Red Sauce
$.1800 $
3000
White Sauce
$ .1800 $
Spice
Global Business Solutions
2721Merry Oaks Trail
Winston Salem, NC USA Ph

5. Option 1 Cash In Advance Exporter has payment Exporter has product
Importer must trust that shipment will be made
Requiring this method may cost you the sale
The Exporter

6. Option 2 Letter of Credit
What IS letter of credit?
Who benefits from a letter of credit?
Do l/c’s guarantee payment?
How does an l/c benefit the importer?
Can exporters determine the cost of an l/c in advance?
Importers Bank

7. What is a Letter of Credit?
Pro Forma Quotation
The Importer
The Exporter
Advis e
L/ C
Exporters Bank
Importers Bank 7

8. Option 3: Collection (Sight draft, Cash against documents)
Good s
Documents
Exporters Bank
Correspondent Bank 8

9. Option 4 – Open account Export Credit Insurance
Ship on open account terms with payment insured
Be more competitive by offering open account terms rather than CIA or L/C
Market to riskier areas
Obtain loans based on insured foreign a/r
Protection against commercial and political risks

10. Benefits of Credit Insurance
Financing
Banks will loan against insured receivables
Competitiveness
Don’t walk away from a sale
Reduce or eliminate write off’s
Typical cost of insurance is fraction of write off
Secure your 2nd most fluid asset after cash

11. ProForma Quotation – Part 2
What shipping terms do we quote?
Estimated Delivery:
Ten (10) weeks after receipt of signed order and deposit
Recommended method of shipment: Oceanfreight
Quantity
Descriptio n
Approx.
Carton
Total Amount
3000
carton s
US$
6000
Red Sauce
$1800
$ 10,800.00
White Sauce
$.1800 $
Spice $
Total Ex Works
$21,600
Inland Freignt (FOB)
$ 200
Ocean Freight (CFR)and Insurance (CIF)
$ 5,559
Total CIF Istanbul, Turkey
Finance charge for 60 day terms
$27,359 $
This quote is valid for 30 days.
Buyer must notify exporter of any product dispute within 10 days
of receipt of goods. After 10 days importer accepts product as delivered.

12. Shipping Terms INCO Terms International Commercial Terms http://www
Shipping Terms INCO Terms International Commercial Terms

13. IncoTerms 2010 IncoTerms 2000 IncoTerms 2010 13 terms 4 catagories
Exw ◄
FCA
FAS
FOB
CFR
CIF
CPT
CIP
DAF
DES
DEQ
DDU
DDP ◄
11 Terms 2 Catagories
Category 1: Any mode of transportation
Ships, Planes, Trucks, Trains
EXW ◄
DAP = Delivered at Place
DAT = Delivered at Terminal
Category 2 = Ocean & Inland

14. The MOST Important Term…
C O M M U N I C A T I O N 14

15. Global Business Solutions www.gbsus.com 336-794-3930 kathy@gbsus.com15