With Albaraka Türk's assurance, you can make your import payments with the most suitable options for your business conditions.
Advance Payment and Cash Against Goods Import transactions can be performed via internet branch as well. Just 4 USD+Swift - until 31.12.2020
- It is pre-financing provided by the importer for the exporter; the payment for the goods is made before the imported goods are delivered.
- Banking expenses and commissions are low in comparison to other forms of payments.
- The purchaser (importer) has the advantage of receiving discount since the payment is made in advance.
- 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 a payment method 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.
Cash Against Documents
- This is the form of payment that occurs when the exporter is entrusted the document to the bank so that the cost of goods can be collected after the shipment.
- 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.
- It is risky for the exporter because payment is made after custom clearance.
- It is a promise of payment with a maturity date that can be used with letter of credit, cash against documents and cash against goods, occuring when the importer accepts the policy attached in the delivery documents.