Trade Atlas is a database where qualified companies dealing with export and import around the world can be found, but there are many issues that need to be considered when importing and exporting. You can find companies that are suitable for the qualifications you are looking for on Trade Atlas. In addition, there are issues such as the payment method you need to pay attention to. Firms that will encounter many regulations in the country where both exports and imports take place must also choose one of the payment methods defined by the law for the safety of both themselves and their counterparts.
It is a payment method based on the importer's payment of the price of the goods before the export takes place and the exporter's shipping the goods as a result of this payment. In this payment method, the exporting person or institution undertakes no risk. The risks such as whether the goods will be delivered on time or not belong to the importer. It is the second most widely used payment method in foreign trade in Turkey.
Cash Against Goods
The exporter sends the goods to the importer without any payment or issuing a policy. The cost of the goods is paid at a later date determined in the contractual payment or after the goods are sold. The risk is on the exporter. The importer must be well known and trusted or assured by a bank guarantee. The most widely used payment method in Turkey is the cash against goods payment method with a share of 66.5%.
Cash Against Documents
It is the payment method in which the importer pays the cost of the goods against the documents representing the goods. It is a safe method for the importer company as the goods are checked and received. With a preference rate of 11% in Turkey, this payment method is the third most preferred payment method in foreign trade.
Letter of Credit
Letter of credit is a payment method that assumes payment by the bank to the exporter if the conditions agreed upon from the beginning are fulfilled. These conditions are generally the submission of documents showing that the goods have been shipped. The terms of the letter of credit are submitted to the exporter's bank with a document called a letter of credit. The exporter collects the cost of the goods when the exporter makes the shipment, fulfills the conditions specified with the letter of credit, and submits the document to the bank.
Cash Against Documents with Acceptance Credit
In foreign trade transactions, if the exporter has prepared a document containing the documents and the maturity of the payment, this is the form of payment that allows the delivery of the documents after the document is signed by the importer. After the importing company signs the document and receives the documents, they give the documents to the customs administration and take the goods from the customs.
Letter of Credit with Acceptance Credit
It is a form of payment in the letters of credit opened in accordance with international rules, which allows the shipping documents as well as the policies to be released with the acceptance by the bank or the correspondent bank of the company that imports them and the costs to be paid on the policy maturity.
Cash Against Goods with Acceptance Credit
In this payment method, it is a method based on the realization of the policy within the maturity period after the exported goods are received by the importer and the policy is accepted.
The goods imported through consignment are brought to the imported country without paying the cost, just as in the case of open credit imports. After these imported goods are sold completely or partially, the price is sent to the exporter.
Payment methods are one of the most important factors in ensuring reliability and sustainability in trade. Payment methods play a major role in maintaining this reliability through banks, guarantees and policies. By means of these methods, the risks are officially shared between the actors taking a share in the trade and recorded. Trade Atlas is a global importer and exporter search engine that contains 1.5 billion bills of lading and shipment data of 17.5 million importer companies in more than 230 countries around the world. Trade Atlas is with you to accompany you in taking steps towards becoming a more important part of global trade! To be a part of the global ecosystem, you can register and search for free by clicking here.