As an Indian exporter, navigating the complexities of international transactions and compliance can feel like solving a complex puzzle. Today, we'll explore a crucial piece of that puzzle: FIRC

FIRC full form is Foreign Inward Remittance Certificate. It is a document issued by banks as proof of receiving international payments. Over the years, regulations around FIRC have changed significantly, creating confusion and mystery around this important document. Let's clear the air and decode the what, who, and why of FIRC.

FIRC or Foreign Inward Remittance Certificate serves as a proof of foreign money transfer for exporters in India. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">AD (Authorised Dealer) Category I Banks</a> were authorised to issue FIRCs to exporters for receiving payments from foreign sources. This document was essential for exporters to obtain after each cross-border payment. It served not only as proof of payment receipt but also as a crucial document for claiming export-related incentives, such as tax exemptions on foreign currency payments received in India.

As we've covered, the full form of FIRC is Foreign Inward Remittance Certificate and for a long time it served as proof of export income from abroad. However, with changing regulations, the function of FIRC has also changed significantly. Let's take a look:

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on&nbsp;Foreign Direct Investment (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA/BIRC is what you need.

For clarity, we'll use the term FIRC moving forward, but it refers to FIRA throughout.

Anyone receiving foreign payments needs FIRC.&nbsp; Beyond goods and service exporters engaging in international trade, many individuals and entities may receive international payments without realising it.&nbsp;

Overall, the following typically require a FIRC:

Beyond compliance, here’s why FIRC is crucial for exporters:

FIRCs are issued by AD Category I banks. You can contact your bank to get your FIRC after receiving your foreign payment. <a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Alternatively, you can also use platforms like Skydo to get your FIRC instantly after every payment.&nbsp;</a>

Who Needs FIRC and Why It’s Important for Exporters?

FIRC (Foreign Inward Remittance Certificate) is essential for anyone receiving foreign payments, including:

Exporters, in particular, rely on FIRC for two key reasons:

FIRC is issued by Authorized Dealer (AD) Category I banks, and businesses can obtain it directly from their bank. However, it is usually a cumbersome process requiring multiple follow-ups and most banks charge around INR 500 to issue each FIRC.&nbsp;In contrast, platforms like Skydo offer a fast, hassle-free solution, providing an instant FIRC for free after every foreign payment—no manual requests, no extra costs.

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

Receiving your export payment directly through your bank can make obtaining an FIRC a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRC. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRC, depending on the institution.

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

What is the difference between eBRC and FIRC?

Generally speaking, e-BRC applies mostly to goods and software exporters (under <a href="https://stpi.in/en/home?no_follow=true/">STPI</a>). If you are one of them, you can use this simple decision tree to understand which documents you will need:

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

FIRC full form is Foreign Inward Remittance Certificate. Learn what FIRC is, its importance for exporters and freelancers, and how to obtain it easily

FIRC: Full form, meaning and RBI guidelines

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

small_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

thumbnail_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

Prashanth Kumar

If you are familiar with <a href="https://www.skydo.com/blog/differences-between-neft-and-rtgs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">NEFT and RTGS payments</a>, you must have seen a number attached to every executed transaction under NEFT or RTGS. The number called a UTR number, plays a crucial role in tracking, reconciling, and ensuring the secure movement of funds within the banking system.

A Unique Transaction Reference Number, commonly known as a UTR number, means a 16-digit (for NEFT) and 22-character (for RTGS) unique code assigned to every transaction executed under the National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS) systems.&nbsp;

When you make a digital transaction using NEFT or RTGS, the system automatically assigns a <a href="https://www.nobroker.in/forum/what-is-utr-no-in-rtgs/">UTR number to the completed transaction</a>, which generally looks something like XXXXR786890657897654XX. The main reason behind assigning a UTR number to every transaction is to track the completed transactions easily for future reference.&nbsp;

UTR numbers typically consist of around 22 characters, although the exact length can vary slightly between banks. The structure of a UTR number usually includes alphanumeric characters, combining letters and numbers, including:&nbsp;

To track the UTR number for a transaction, you can do UTR no. tracking by visiting the following places.

In certain situations, UTR numbers might be unavailable or delayed, causing inconvenience for individuals and businesses. One common scenario is during weekends, bank holidays, or after banking hours when transaction processing is suspended until the next working day.

Additionally, the bank executing the payment may see some technical glitches in the NEFT or RTGS system, leading to delays in generating UTR numbers for executed transactions. Furthermore, if the transaction is initiated through third-party payment platforms or non-banking financial institutions, obtaining the UTR number may require additional time due to intermediary processes.

However, if you are unable to find the UTR number, you can always contact the bank for clarity. For a better approach to UTR record-keeping, collecting or downloading the confirmation receipt is essential. These documents typically contain the UTR number along with other transaction details.&nbsp;

For further information and resources regarding NEFT, RTGS, and UTR numbers, you can refer to the <a href="https://www.rbi.org.in/">Reserve Bank of India (RBI) website</a>, which provides comprehensive guidelines and FAQs on electronic fund transfers.&nbsp;

Additionally, you can access your bank's website and read about their specific terms and conditions and redressal processes relevant to NEFT, RTGS, and the resulting UTR number.&nbsp;

Digital transactions such as NEFT and RTGS have become the core of the Indian payment system, especially for entrepreneurs running businesses. With the frequent sending and receiving of payments, it is almost impossible to visit the bank and execute physical transactions.&nbsp;

However, digital transactions under the NEFT and RTGS come with a unique transaction identifier called the UTR number, which can prove helpful in tracking transactions and complying with tax laws. While its availability may be subject to occasional delays or technical constraints, maintaining accurate records of UTR numbers is crucial for individuals and <a href="https://www.skydo.com/blog/top-6-strategies-for-team-alignment-with-business-mission?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">businesses to ensure seamless financial transactions.</a>

Ans: No, the UTR number for <a href="https://www.remitfinder.com/blog/utr-number-everything-you-need-to-know">NEFT UTR is 16 digits</a>, while the UTR number for RTGS is 22 characters. Hence, you can differentiate between the NEFT and RTGS UTR numbers based on their format.&nbsp;

Ans: No, the IFSC code is a unique alphanumeric code assigned to each bank branch participating in India's NEFT and RTGS systems. The UTR number is a unique identifier assigned to individual NEFT and RTGS transactions. It is generated by the bank that processes the transaction and serves as a reference number to track and identify that specific transaction.

Ans: The UTR number is generated by banks when a user transfers money to another <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">bank account</a>. As part of processing the transaction, the sending bank assigns a unique UTR number to that particular transaction. This UTR number serves as a distinctive identifier for tracking and reconciling the transaction.

What Is the UTR Number for RTGS and NEFT th

large_What Is the UTR Number for RTGS and NEFT th

medium_What Is the UTR Number for RTGS and NEFT th

small_What Is the UTR Number for RTGS and NEFT th

thumbnail_What Is the UTR Number for RTGS and NEFT th

Imagine this: you put a lot of effort, time, and creativity into a project for a client, only to get delayed or ignored when it comes to payment. Freelancers face this common and frustrating problem, especially when working with new or unreliable clients. A staggering<a href="https://www.chaserhq.com/blog/87-of-businesses-paid-late-insights-from-2022-late-payments-report"> 87% of businesses reported being paid late</a> in 2022.&nbsp;

Late payments can hurt your cash flow, motivation, and reputation as a freelancer. Then, how can you deal with this issue and ensure you get paid on time for your work?&nbsp;

This blog post shares some tips and strategies that can help you prevent and handle late payments and some communication strategies to use when dealing with the same.

How To Prevent Late Payments In The First Place?

Here are some tips to help you avoid payment delays and ensure timely payments from your clients.

Despite your best efforts, you may still get late payments often. Follow the steps below to handle the situation professionally and effectively.

Communication Strategies To Use When Dealing With Late Payments

Communication is key to managing and resolving late payment issues. Here are some ways to communicate with your clients effectively and professionally about payments.

If the client doesn’t resolve the late payment issue after following the steps above, you may need to escalate the matter and take more drastic measures. However, before you do so, you should consider the following factors.

Late payments are a common challenge for business owners and freelancers, but you can mitigate them with proper communication and preventive measures. To deal with late payments, start by preventing them with reliable clients and clear contracts.&nbsp;

If payments are late, evaluate the situation, resend invoices, and consider halting work. Finally, maintain open communication, offer incentives, and escalate the issue if necessary.

Q1. How do you tell a client they are late on payment?

Ans. By sending a friendly and polite reminder via email, phone, or text message, you can notify the client that they are late on their payment. Attach the invoice copy for reference, along with the invoice number, amount, and date. You should ask them to acknowledge receipt and inform you of the payment status.

Q2. How do I professionally ask for a late payment?

Ans. You can professionally ask for a late payment by following the communication strategies mentioned above, such as offering incentives, highlighting the due date, sending reminders, approaching the client with empathy and professionalism, and presenting solutions.&nbsp;&nbsp;

Q3. How do I assess the financial reliability of potential clients before engaging in a project?&nbsp;

Ans. To determine their financial stability and creditworthiness, consider using credit check services or financial analysis tools. You can also ask your network for referrals from freelancers or professionals.

Q4. How can technology and software help in managing and tracking payments efficiently?&nbsp;

Ans. Technology and software can enhance your ability to manage and track payments. For example, invoicing software can automate invoicing, send reminders, track payments, and generate reports.&nbsp;

Accounting software can help you manage your income, expenses, and cash flow. Payment gateways can facilitate online payments and provide secure and convenient payment options for your clients. Project management tools can help you track the progress of your projects and the associated payments.

Remember, dealing with late payments is a common challenge for many businesses and freelancers. However, with the right strategies and tools, you can ensure timely payments, maintain healthy client relationships, and improve your financial well-being.

How to Deal With Late Payments From Your Clients th

large_How to Deal With Late Payments From Your Clients th

medium_How to Deal With Late Payments From Your Clients th

small_How to Deal With Late Payments From Your Clients th

thumbnail_How to Deal With Late Payments From Your Clients th

Among the key players in the United Kingdom's financial landscape, the Faster Payments Service (FPS) and Bankers' Automated Clearing Services (BACS) stand out as cornerstones, facilitating the seamless movement of funds in different ways.

As a freelancer or service exporter in India, it is important to understand both payment methods as your UK-based clients may opt for either of these payment methods.&nbsp;

Understanding The Faster Payments Service (FPS)

The Faster Payments Service (FPS) was created in 2008 and reduces the payment times between bank accounts within the United Kingdom. Previously, such electronic payments between UK bank accounts used to take at least 3 business days, which the FPS has reduced to a matter of seconds.&nbsp;

In 2022, the Faster Payments Service processed transactions worth <a href="https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/faster-payment-system-statistics/">£3.2 trillion. </a>When making an FPS payment, there are three stakeholders involved in initiating and executing transactions:&nbsp;

<a href="https://www.pwc.in/industries/financial-services/fintech/payments/analysing-faster-payment-systems.html">A successful FPS transaction</a> consists of two vital steps:&nbsp;

There is no option to cancel or reverse them after initiation. In case of a mistake, entities can follow the Credit Payment Recovery (CPR) procedures. The procedures are in place to help recover any FPS payment sent due to an error.&nbsp;

Understanding BACS (Bankers' Automated Clearing System)

BACS, or Bankers' Automated Clearing System, is an electronic payment system allowing participants in the UK to send and receive funds. The electronic network includes 16 main building societies and clearing banks in the UK. Operated and managed by Pay.uk, it is one of the most cost-effective payment methods for entities such as freelancers and small businesses to send and receive payments.&nbsp;

BACS handles payments within the UK through UK-registered bank accounts and provides the following payment facilities:&nbsp;

In 2022, BACS processed <a href="https://newseventsinsights.wearepay.uk/media/ndopemiv/bacs-annual-processing-statistics-2022.pdf">direct debits of £4.7 billion</a> and direct credits of £2 billion. Currently, both the BACS payments; Direct Debit and Direct Credit work on a three-day cycle.&nbsp;

Similar to FPS, BACS payments also have an upper limit of £1 million. However, banks have the right to set their upper limit on the per transaction and daily amount users can transfer using BASC.&nbsp;

Comparing FPS and BACS As Payment Methods&nbsp;

Here is the difference between FPS and BACS as payment methods.

When choosing between the payment methods, it depends on:

For example, if you want to make payments without the urgency of settlement, you can use BASC. However, if you want to settle payments immediately, FPS would be the right choice.&nbsp;

​​To pay by BACS or FPS, you need the following information:&nbsp;

FPS and BACS for Indian Freelancers and Tech Service Exporters

As an Indian freelancer, tech service provider or any other type of business entity collaborating with clients in the UK, both payment schemes make it easier for international clients to make payments. This is because most business entities in the UK have a UK bank account, which they can easily use to transfer funds using FPS and BACS.&nbsp;

However, it becomes cumbersome for Indian freelancers or other service exporters to create a traditional bank account in the UK. Indian service exporters such as freelancers must create a virtual account on third-party platforms such as <a href="https://www.skydo.com/">Skydo</a>.&nbsp;

Using <a href="https://www.skydo.com/">Skydo</a>, you don’t have to open a traditional bank account in the UK and can virtually receive Pound Sterling payments. Once received, you can transfer funds from your virtual BACS and FPS account to your Indian bank account after converting the funds into INR.&nbsp;

In their essence, both FPS and BACS payment schemes have changed the B2B payments landscape in the UK. These play pivotal roles in facilitating seamless and efficient transactions within the country, serving both businesses and individuals alike.

The FPS, with its real-time capabilities, has revolutionized payment processing, offering a swift and secure channel for funds transfer. On the other hand, BACS, with its legacy and stability, remains a vital player and ensures the smooth flow of funds on a scheduled basis.

For Indian freelancers and service exporters, third-party platforms such as <a href="https://www.skydo.com/">Skydo</a> are making it easier to collaborate with UK clients and receive payments virtually, without having to create a UK bank account. You can open your virtual FPS or BACS account by visiting the <a href="https://www.skydo.com/">Skydo</a> website.&nbsp;

Q1. Do I need a UK bank account to receive FPS Payment?

Ans. To receive FPS payments, having a UK bank account is typically necessary. The FPS system relies on the UK banking infrastructure, and almost all participants are UK-based. In case you don’t have a UK bank account, some financial institutions and third-party payment providers like offer virtual account solutions for easy cross-border payments.

Q2. Do I need a UK bank account to receive BACS Payment?

Ans. Yes, typically, you would need a UK bank account to receive BACS (Bankers' Automated Clearing Services) payments. To receive BACS payments, you would generally need to have a UK bank account where the funds can be deposited. However, you can use third party service providers like Skydo to create virtual accounts and still receive BACS Payment.

Q3. What is the limit for FPS and BACS transactions?

Ans. Individuals can send up to £1 million using FPS and BACS. Banks set their limit for the maximum amount entities can send per transaction or daily.&nbsp;

Q4. What is the settlement time for FPS and BACS transactions?

Ans. As the name suggests, FPS payments are one of the fastest and are settled almost immediately after payment initiation. However, some payments may take up to two hours. BACS takes three days to settle.

large_Everything about FPS (UK), BACS (UK) Th

medium_Everything about FPS (UK), BACS (UK) Th

small_Everything about FPS (UK), BACS (UK) Th

thumbnail_Everything about FPS (UK), BACS (UK) Th

Everything about FPS (UK), BACS (UK) Th

As an Indian importer or international trader, you may have occasionally spotted the mysterious purpose code "1501" on your bank statement. Purpose code 1501 primarily deals with refunds and rebates associated with imports. In this blog post, we will discuss this purpose of code, explain its importance and look at a few common scenarios where code P1501 is used.

Before we dive into the details of purpose code 1501, here's a brief snapshot of Purpose Code 1501:

With the Reserve Bank of India (RBI) releasing its <a href="https://kpmg.com/us/en/taxnewsflash/news/2025/04/india-revised-draft-export-import-regulations.html">revised draft </a>of the 'Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2025' on April 4, it’s crucial for businesses to stay informed about these changes to ensure ongoing compliance and avoid surprises down the line."

Purpose Code 1501 in India specifically denotes transactions related to refunds or rebates received on account of imports. This code signifies that you've received money back from foreign entities associated with goods or services previously imported into India.&nbsp;For example, imagine you run a business in India that imports electronic components from China, assembles them locally, and sells the final product. If one of the components you imported turns out to be faulty and you file a complaint, the supplier may issue a refund for the defective part. This refund would need to be categorized under Purpose Code P1501.

Why is Understanding Purpose Code 1501 Important?

Note that the purpose code 1501 is used specifically for inward remittances (receiving refunds) related to imports. For outward remittance, i.e for sending refund abroad, purpose code S1501 is used.

Claiming Import Duty Refund Using Purpose Code 1501

Imagine you're an importer in India and you've just received a shipment of goods from overseas. Let's say you paid some import duty on these items. Now, for some reason, maybe a few items were damaged, or you were overcharged, you're due a refund on that duty. Here's a simplified look at how that refund might come back to you and where Purpose Code P1501 plays a role:

So, in simple terms, if you get an import duty refund that comes from a company or entity outside of India, your bank will use Purpose Code P1501 to categorize this money coming into your account. It's like a special tag that helps everyone understand the reason for the transaction.

How to Select the Right Purpose Code for Your Transaction?

Choosing the correct purpose code is crucial to ensure smooth and compliant transactions, especially when dealing with international payments. If you're receiving funds from abroad related to imports, such as refunds, rebates, or adjustments, Purpose Code 1501 should be used.

Before finalizing any transaction, carefully review the nature of the payment to confirm it accurately reflects the purpose of the funds. For instance, if the payment is not related to an import-related refund or rebate (e.g., a personal remittance from abroad), a different purpose code would be applicable.

To avoid discrepancies or delays, ensure you have all the necessary documentation to support the use of Purpose Code 1501. This may include:

If you're uncertain about the appropriate purpose code for your transaction, consult your bank or a financial expert. Using the wrong code can lead to delays in processing, scrutiny from regulatory authorities, and even potential penalties.

By carefully selecting the correct purpose code, you can ensure smooth and compliant transactions while maintaining accurate financial records.

large_P1501_Purpose_Code_Thumbnail_1246x896.png

medium_P1501_Purpose_Code_Thumbnail_1246x896.png

small_P1501_Purpose_Code_Thumbnail_1246x896.png

thumbnail_P1501_Purpose_Code_Thumbnail_1246x896.png

P1501_Purpose_Code_Thumbnail

Most new exporters find the trade paperwork overwhelming. First, the volume and second, the lack of experience, lead them into a spiral of confusion.

If you're experiencing a similar situation, we might have the right blog to start cutting through this confusion. Among the various documents, the proforma invoice is one of the most frequently used by exporters worldwide. Is it the same as a formal invoice? Not really. It plays a different role.&nbsp;

We suggest reading this comprehensive guide to find out everything about proforma invoices. It breaks down all the details, from their basic definition and purpose to practical formats and examples. 

A proforma invoice is a preliminary bill of sale that provides a detailed estimate of costs before the sale is confirmed. It defines the key transaction details upfront so that the buyer and seller understand the proposed terms before the transaction is initiated. This helps to streamline the sales process and avoid going back and forth.

A proforma invoice typically includes detailed information like item descriptions, prices, shipping weights, and transport charges. It’s important to remember that it is only a provisional document and must be followed up with a commercial invoice to request payment from the buyer.&nbsp;

Here’s a scenario to help you understand the practical application of a proforma invoice. Imagine a textile exporter in India receiving a bulk order of 1,000 meters of silk fabric. The exporter is new and eager to close the deal but is unsure about the exact shipping cost and&nbsp;customs duties. So, they share a proforma invoice that includes the fabric cost, estimated shipping to the U.S., potential customs duties, and other handling fees.

By providing this, the exporter gives the buyer a clear picture of the total cost. The buyer can use this information to negotiate with the exporter and make a more informed decision. They can also use it to arrange import permits or financing.

Here are the most common reasons why exporters choose to use a proforma invoice in international trade:

Negotiation and Transparency: It provides a clear preview of the proposed international transaction and invites open discussion about prices, terms, and conditions

Professional Commitment: The invoice shows the seller's willingness to provide goods at the agreed price and duration, which establishes trust with potential customers

Buyer Acknowledgement: It formally recognizes the buyer's intent to purchase and outlines the mutual understanding of the transaction

Streamlined Process: By defining transaction details upfront, proforma invoices reduce back-and-forth communications, saving time for both parties.

Internal Approvals: Buyers use proforma invoices to get internal purchase approval and help their finance and procurement teams understand the transaction details.

Cost Efficiency: Proforma invoices help businesses reduce administrative overhead by simplifying the quote-to-cash process - the entire cycle from the buyer showing interest to receiving the payment.

Here are two sample proforma invoices to give you an idea about the presentation of the above details:

You must have observed the following details present in both the images, which resonates with what we covered in the previous section:What we covered in the previous section:

You might have also observed that while both the proforma invoice templates are acceptable, they differ in design. The first is more modern and has a spacious layout. It also covers only the basic shipping information, like the port of loading and discharge. The second is more compact in design and looks more traditional, but it covers detailed shipping information, including the number of packages, weight, and carrier name.

Is Proforma Invoice Required For Indian Exporters?

A proforma invoice is not legally compulsory for Indian exporters, but it has become an essential document in the export sales process. For you as an exporter, a proforma invoice acts as a preliminary document that confirms the importer's order and provides a detailed breakdown of shipment costs. It also becomes a foundational document that you can use to prepare the final commercial invoice.

From an importer's point of view, the proforma invoice gives them detailed information on the goods they will receive. It specifies the item quantity, price, and other relevant transaction information. This ensures transparency and mutual understanding between you and the importer before any goods are shipped.

The other significant advantage of a proforma invoice is its ability to establish payment arrangements. You can use it to set up letters of credit or to secure trade financing.

In summary, while the law does not mandate a proforma invoice, it is a good practice to follow. It provides a detailed, preliminary account&nbsp;of the transaction, builds trust and transparency with the buyer, and reduces financial risks.

Receive Seamless Export Payments With Skydo

A proforma invoice is not a legal document that can be used to request payment from buyers, but it is still a strategic tool for an exporter. It builds trust and irons out misunderstandings, helping to push the deal to the next stage. But as you move towards finalizing the deal with the buyer, you need a trusted invoicing and payment platform.

This is where Skydo comes in. It is a comprehensive solution for Indian exporters like you to manage invoices and multi-currency payments in one place. Let's talk about Skydo's invoicing capabilities first.

But Skydo's real strength lies in collecting payments from your buyers. You might have heard from fellow exporters losing money to high transaction fees and forex markups during international transfers. Skydo takes a much cost-effective approach to ensure you get the maximum value.

Skydo works with you like a strategic partner to take your business global. Sign up now and revolutionize your international payment process