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.
Advance Payment
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.
Consignment
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.
