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In business, a quote describes a financial document offering one party's products/services to another. It has to include the business details of both companies, a list of offered products/services, their description, price (per piece and total), and validity (deadline when the offer expires). If the client accepts the quote, it can be converted into an invoice.
Every business quote has to include the business details of both companies, a list of offered products/services, their description, price (per piece and total), and validity (deadline when the offer expires). To write a quote for a job, you can make it by hand, in an app, or via a business quote generator. Our Free Online Quote Maker above has all these fields premade and ready to be filled out for maximum convenience. Try it yourself and join the dozens of small businesses that loved it and registered to use the full version of Billdu to keep the archive of their quotes and convert them to invoices.
Quotes and estimates contain similar (or identical) information. The main difference is that you are expected to honor quoted prices when delivering products, whereas, with an estimate, you have some room to adjust the pricing. You create estimates when you don't know the full scope of the project/delivery yet.
The main difference between invoices and quotes is when and why you issue them. If you don't know when to use quote vs. invoice, consider the following: Quotes are used as offers of products or services and are non-binding, meaning your clients don't have to accept them, and nothing happens. Meanwhile, you would send an invoice after delivering the promised products or services, and they are legally binding (i.e., the customer has to pay you, or you can sue them).
Depending on the situation when they're used and the potential clients they're issued to, there are several different types of financial quotes. Most commonly, these include:
Sales Quote - The standard quote described throughout this article. It is a formal document provided by a seller to a potential client detailing the products/services, quantity, price (per unit, total cost), and any applicable terms and conditions.
Proforma Invoice - A document similar to a standard sales quote, primarily used in international trade. Has to include additional information, like taxes, shipping, price conversion, and other relevant fees.
Service Quote - A type of quote used specifically when offering services. Has to include details regarding the scope of the services, the hourly/project-based rate, estimated completion time, and any additional costs (ex., procurement).
Bid Quote - A type of quote traditionally used in procurement or tender processes where multiple companies compete for a job. Contents can match those of a standard sales quote.
Custom Quote - A type of quote used in situations where a client may have unique requirements unaccounted for in standard pricing. A custom quote should include details tailor-made for the client's use case, including a detailed breakdown of costs, specific items, and terms and conditions.
Yes, you can use different currencies on your quotes. In international trade, it's often necessary to account for the customer's local currency, so you can choose whether to create your quote with a single currency, dual currency (detailing both in the pricing), or a section explaining the conversion rate.
Yes, our Business Quote Maker is safe to use. We don't save any of your input information, and our site offers security and encryption features to protect you from unwanted prying eyes. If you'd like to enjoy the convenience of having your business and client information prefilled for future use, we encourage you to try the Billdu App, which is equally as secure with even more productivity features.