RFI vs RFP: What to Know Before Starting the Procurement Process

Understanding the difference between RFI vs RFP documents enables you to make smarter, faster decisions. For finance leaders, these are key to streamlining vendor relationships, cutting costs, and minimizing risk.

This guide will explain the differences, use cases, and strategic value of RFIs, RFPs, and RFQs. It’ll help with procurement decisions, especially when evaluating vendors for services like international payments, payment solutions, or software platforms. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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What Is an RFI?

Before diving into RFI vs RFP, it’s important to understand the following: What’s an RFI?

An RFI (Request for Information) is typically the first step in the vendor selection process. It’s used when your company is exploring solutions but doesn’t yet know the specific requirements of offerings available in the market. It’s a fact-finding mission that helps you gather broad insights without requiring vendors to submit full proposals.

When to Use an RFI?

• When you’re exploring new services or entering a new market
• When internal stakeholders disagree on what the solution should look like
• When you want to understand what vendors can offer before creating a shortlist

Unlike formal procurement documents, an RFI is more open-ended. You might ask vendors to explain how their solutions work, which industries they serve, and what integrations they support. This document is invaluable for finance leaders who want to align procurement strategy with long-term goals.¹

What Is an RFP?

A Request for Proposal (RFP) is a formal request sent to vendors when your organization already knows what it needs. RFPs are used to solicit detailed proposals that include pricing, implementation timelines, project deliverables, and contractual terms.

When deciding between an RFI and an RFP, keep this in mind: While an RFI is about exploring, an RFP is about deciding.

When to Use an RFP?

• When your company has defined the project needs and goals
• When you’re choosing between shortlisted vendors
• When cost, quality, and service must be evaluated together

RFPs are especially important in financial decisions with high stakes, such as selecting international payment providers, implementing ERP systems, or outsourcing payroll services.²

RFI vs RFP: Key Differences

Let’s break down RFI vs RFP by purpose, structure, and expected outcome:

Feature	RFI (Request for Information)	RFP (Request for Proposal)
Objective	Gather general information	Receive tailored proposals
Timing	Early-stage in procurement	Mid-to-late stage
Scope	Broad, exploratory	Detailed and specific
Evaluation	Informal	Structured scoring
Vendor Expectation	Light input	High engagement

What RFQ Fits In

The third document to understand is the RFQ (Request for Quotation). It’s often part of the RFI vs RFP vs RFQ process. The RFQ document also requests vendor information. While an RFI gathers information and an RFP seeks structured proposals, an RFQ in procurement focuses on price.

Use an RFQ When:

• You know exactly when you need
• The product or service is standardized
• Price is the deciding factor

Using RFQ in procurement is common when finance teams are sourcing office equipment, software licenses, or recurring services that don’t require customization.³

RFI vs RFP vs RFQ: When to Use Each One

It’s helpful to view RFI, RFP, and RFQ as three stages of the same journey, from exploration to evaluation to pricing.

• RFI: You’re gathering market intelligence
• RFP: You’re evaluating based on specific needs
• RFQ: You’re asking for exact prices

How to Structure Each Document

Knowing the purpose of each procurement document is essential, as is knowing how to structure them. A poorly written RFI, RFP, or RFQ can lead to vague responses or irrelevant information, making decision-making harder rather than easier.

RFI Structure

An RFI is meant to collect general information; it should be short, open-ended, and easy to respond to. Usually, it includes:

• Introduction: A brief overview of your company and what you’re trying to learn
• Background: Why you’re exploring this service or product
• Questions: Open-ended inquiries about capabilities, offerings, experience
• Timeline: When you need responses by
• Next Steps: Clarify that this is not a commitment and outline any potential follow-up

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RFP Structure

An RFP needs to be more formal and detailed. Vendors use it as a blueprint to tailor their offerings to your needs.

Recommended structure includes:

• Project Overview: What you’re solving for
• Scope of Work: Detailed expectations, deliverables, and constraints
• Proposal Requirements: What the vendor needs to include (pricing, team, timelines, etc.)
• Evaluation Criteria: How proposals will be judged
• Submission Guidelines: Format, deadline, and point of contact

RFQ Structure

An RFQ in procurement is straightforward and should be as concise as possible. It usually includes:

• Product or Service Description: Be specific by including SKUs, quantities, and service parameters
• Delivery Requirements: Location, timeline, special conditions
• Pricing Format: Indicate whether you want itemized costs, volume discounts, or bundled pricing
• Terms and Conditions: Include payment terms and legal requirements³

RFP vs RFQ: A Closer Look

Let’s zero in on RFP vs RFQ, as they’re often confused, yet very different.

Criteria	RFP	RFQ
Goal	Select a vendor based on multiple factors	Choose a vendor based on cost
Complexity	High	Low
Customization	Expected	Not expected
Response Time	Longer	Shorter

Use RFPs when you’re buying a strategic service or custom solution. Use RFQs when purchasing something straightforward, and price is the only variable.³

Best Practices for Finance Teams

If you’re involved in vendor selection and management or procurement oversight, here are a few best practices for making the most of your RFI vs. RFP vs. RFQ process.

1. Start with Clear Objectives

Before choosing a document, align your team on what success looks like. Are you trying to reduce costs, streamline payments, or improve integration?

2. Use RFIs to Educate Your Team

Use RFIs early on to gather insights and align internal stakeholders. It’s especially helpful when new financial tools or international partners are involved.

3. Customize Your RFPs

Generic RFPs result in generic responses. Tailor your RFP to reflect your company’s needs, priorities, and internal workflows to improve response quality and comparison.

4. Score Proposals Objectively

Use a structured evaluation system when reviewing RFP responses. Factor in implementation timeline, support, features, and compliance alongside cost.

5. Leverage RFQS for Quick Buys

When your team needs to purchase a service or product with known specs, use an RFQ to speed up procurement.

Common Mistakes to Avoid

Knowing what these documents do isn’t enough if you don’t use them correctly, or at the right stage of the procurement process. Here are mistakes finance teams should avoid:

• Using RFPs when only an RFI is needed leads to excessive work for both sides with little clarity.
• Skipping RFQs when price is the only factor: If you don’t ask directly, you may overlook better deals.
• Failing to customize RFPs: A generic RFP won’t get high-quality proposals.
• Not involving finance early: Decisions made without financial oversight can exceed budget or overlook compliance risks.

Conclusion

RFIs and RFQs are integral processes in procurement as they allow broad market exploration. Businesses can use these tools to identify the right vendors, compare costs, and understand the current landscape before committing to a solution. Understanding where RFIs fit best, versus where RFQs fit better, allows your business to be strategic while evaluating solutions.

Each tool—whether an RFI for exploring the market, an RFP for gathering tailored proposals, or an RFQ for competitive pricing—serves a clear purpose in the sourcing journey. Used intentionally and in the right order, they enable better decision-making, reduce risk, and improve vendor alignment.

As your company grows, your procurement strategy should grow with it. By leveraging the RFI vs RFP vs RFQ process, finance leaders can shift from reactive purchasing to proactive purchasing for long-term growth and financial health.

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Sources:

1. RFP vs. RFI - What's the Differece? | Tendium
2. RFI vs. RFP - Definition and Key Differences | Trust Pair
3. RFI vs. RFP vs. RFQ | KissFlow