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what is a performa invoice and why is it needed hello and welcome to this informational guide on performa invoices today we will be diving deep into what a performa invoice is and The crucial role it plays in various business transactions what is a performa invoice a performa invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods this document is commonly used in international trade and other high-volume high-value transactions the performa invoice will typically include a description of the purchased items the cost as well as any additional charges however its essential to understand that a performa invoice is not a true invoice or an official demand for payment its more of a commitment from the seller to deliver the goods or services as described for the price quoted provided the terms and conditions are met by the buyer why is a performer invoice needed the performa invoice serves several critical functions in a business transaction one