Commercial / Corporate




International payment forms used in import are as follows :

  • Advance Payment
    It is pre-financing provided by the importer for the exporter; the payment for the goods is made before the imported goods are delivered.

    The purchaser (importer) has the advantage of receiving a discount since the payment is made in advance.
    It has a low cost in comparison to other forms of payment due to the banking expenses and commissions.
    The risk of not delivering the goods is always present although the exporter has received the payment in advance. Therefore, it is a form of payment that is definitely based on mutual trust.
  • Letter of Credit
    It is a conditional bank guarantee that undertakes to give the exporter a certain amount of money, goods or services if predetermined documents showing that the goods have been loaded or the services have been performed are handed in within a definite time in accordance with the demand of the importer.

    Letter of credit, which is widely used as an instrument of payment and guarantee in the international trade, is a transaction that protects both the importer and the exporter.

    The exporter is guaranteed to receive the payment after delivering the goods if they hand in the documents in compliance with the conditions of the letter of credit.

    The importer has the guarantee that the exporter will not be paid until the delivery is completed and will only be paid after they hand in the relevant documents.
    It is a form of payment in which the exporter, after sending the goods, entrusts the documents about the goods to the bank on the condition that the bank will collect the money.

    The method of Cash Against Documents is usually preferred by exporters and importers that know each other very well in order to avoid the bank commissions and expenses in the credit letter transactions.
  • Cash Against Goods
    In this method, the exporter hands in the documents that represent the goods to the importer either directly or through the bank without any payment or in return for a policy; the importer makes the payment on a date after receiving the goods from the customs. It carries risks in terms of the exporter since it does not give the exporter any security about the payment.
  • Acceptance Credit
    It is a promise of payment at a later date that can be used with letter of credit, cash against documents and cash against goods; it takes place when the importer accepts the policy attached in the delivery documents.