What is Request for Proposal (RFP)?

Request For Proposal (RFP) is a type of bidding solicitation in which a company or organization announces that funding is available for a particular project or program, and companies can place bids for the project’s completion. It outlines the bidding process and contract terms, and provides guidance on how the bid should be formatted and presented.

A request for proposal for a specific program may require the company to review the bids to not only examine their feasibility but also the health of the bidding company and the ability of the bidder to actually do what is proposed. A Request for Information (RFI) is primarily used to gather information to help make a decision on what steps to take next. RFIs are therefore seldom the final stage and are instead often used in combination with the following: request for proposal (RFP), request for tender (RFT), and request for quotation (RFQ).

Audio Definition/Pronunciation

OTHER TERMS BEGINNING WITH "R"

  • Recourse

    Recourse is when a borrower agrees to pledge their own assets against funding from a bank or other lender in case the borrower is unable to meet the debt obligations. Recourse factoring is when the client will repay or replace…

  • Rehypothecation

    Rehypothecation is the practice by banks and brokers of using, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their collateral may be compensated either through a lower cost of…

  • Retention (Contractors)

    Retention is the percentage of payments for a job in a process that is held back to ensure adequate performance. Retention is considered an ineligible A/R because it takes a long time to collect and it is common for disputes…

  • Reverse Factoring or Supply Chain Financing

    Reverse Factoring or Supply Chain Financing is when a bank or finance company commits to pay a company’s invoices to the suppliers at an accelerated rate in exchange for a discount. It is unlike traditional invoice factoring, where a supplier…

  • Revolving Line of Credit (RLOC)

    A revolving line of credit is an agreement that permits an account holder to borrow money repeatedly up to a set dollar limit while repaying a portion of the current balance due in regular payments. Each payment, minus the interest…