Payment Methods

LEGISLATION

...
Need Support?

Payment Methods

LETTER OF CREDIT PAYMENT

Letter of credit; It is a guarantee that the payment will be made for the payment of the prices of the exported goods. Banks and private finance institutions issue an import permit within 10 days of receiving a letter of credit order from importers and sell foreign currency based on this. A forward letter of credit can be opened within the general principles. Payment term is determined freely on bill of lading or transport bills. Imported goods without a Turkish Currency Transfer Document, Foreign Currency Sales Document or without a record of opening a Foreign Currency Deposit Account (except for forward letter of credit) are not allowed to be cleared from customs.

A contract is made between the exporter and the importer that the sale will be made with a letter of credit.

  • The importer instructs the issuing bank to extend a loan in favor of the exporter.
  • The issuing bank requests confirmation by notifying the correspondent bank in the exporter's country that the loan will be opened.
  • The correspondent bank in the exporter's country notifies the exporter that the loan will be opened and requests confirmation that the export will be made.
  • The exporter loads the goods.
  • The exporter submits the loading documents to the correspondent bank.
  • The bank makes the payment after accepting the compliance of the documents with the terms of the letter of credit. (there may be a turnover policy)
  • The correspondent bank sends the documents to the issuing bank in the importing country.
  • The issuing bank checks the compliance of the documents with the terms of the letter of credit.
  • If the exporter has sent the documents to the issuing bank, it pays directly to the exporter or to the correspondent bank.
  • Payment; Payment can be made to the correspondent bank, the confirming bank, or the bank that accepts the endorsement or policy.
  • After the issuing bank determines the conformity of the documents to the letter of credit, the documents are sent to the exporter so that the amount of the credit can be paid.
  • The importer receives the goods by sending the transport documents to the carrier.

TYPES OF LETTERS OF CREDIT

Revocable Letter of Credit: the importer or exporter can cancel the letter of credit unilaterally. Irrevocable Letter of Credit A letter of credit can be canceled with the consent of all parties. Confirmed Letter of Credit: It is a type of letter of credit that covers the export procedure carried out by the parties within the framework of the contract signed between them, as explained above.

ADVANCE PAYMENT

It is the payment of the importer's cost of goods to the exporter before the export of the goods, without a document such as bill of lading or commodity bill.

  • The cost of the goods to be imported is deposited by the importer in its own national currency to the issuing bank in its country.
  • The issuing bank instructs its correspondent in the exporter's country and requests that the amount of the goods be paid to the exporter.
  • The exporter collects its receivables from the correspondent bank in its own national currency and issues a Foreign Exchange Purchase Certificate.
  • The exporter sends the ordered goods to the importer.
  • Transfer requests for cash payments are closed by issuing a DSB-Currency Sales Document within 5 days following the request.
  • Importers request closure by submitting the GB-Customs Certificate and the original invoice within 130 days following the payment.

PAYMENT AGAINST VESAIC

It is the payment of the price of the goods purchased by the importer based on the document representing that goods.

  • A sales contract is concluded between the importer and the exporter.
  • The exporter ships the goods.
  • The exporter sends the shipping document to its own bank (issuing bank).
  • The issuing bank sends the referral documents to the correspondent bank as an attachment to the foreign exchange letter.
  • The importer pays the cost of goods to her own bank, to the correspondent bank.
  • The correspondent bank sends the shipping documents to the importer.

PAYMENT AGAINST GOODS

It is an export made in the form of payment of the price of the goods purchased by the importer after the import of the goods.

  • The exporter ships the goods.
  • The importer clears the sent goods from customs.
  • The importer deposits the cost of the goods in the bank.
  • The bank transfers the cost of the goods to the exporter.