Cash In Advance
This is the type of payment in which the importer pays the price of goods in advance, and the exporter ships the goods after receiving the price. Thus, the risk of collection from the exporter's standpoint ceases to exist. The importer is also exempt from the RUSF as it will have paid price of the goods in advance.
Cash Against Goods
It is the type of payment in which the importer pays for the price of the goods after receiving them, and the exporter ships the goods without receiving the payment. Importer has to pay RUSF. It is the most risky method of payment for the exporter.
Cash Against Documents
It is the type of payment in which shipping documents for the exported goods are sent through the exporter's bank to the importer's bank, for delivery to the importer after the collection of the price of the goods. By this way, the importer cannot clear the goods from the customs without paying their price, and the exporter avoids the payment risk.
Documents Against Acceptance
It is a mode of payment, where in the event of an installment sale, delivery of the documents is allowed upon buyer’s acceptance of the draft that had been drawn by the seller. If it adds its aval on the draft, the Bank will have assumed the obligation to pay. Where in international trade drafts can be drawn in foreign currency, in domestic transactions they can be drawn only in Turkish Lira.
Letter of Credit
It is a qualified bank guarantee given by the buyer’s bank upon the buyer’s instructions to the effect that upon submittal of the documents that meet the conditions of the letter of credit, before the agreed-upon deadline, the price will be paid to the seller. In international trade, they are issued in foreign currency, whereas in domestic trade, they can be issued only in Turkish Lira.