Standard Turkish payment is 30% T/T deposit, 70% on B/L copy. L/C at sight is common above USD 50,000 and unlocks better MOQ and pricing. Avoid cash for first orders; use escrow for under USD 20,000 deals when possible.
- Standard
- 30% T/T + 70% B/L
- L/C threshold
- USD 50,000+
- Deposit safety floor
- 30%
- Risk window
- Sample-to-deposit
The standard structure
Most Turkish factories quote 30% deposit by T/T at order confirmation and 70% balance against bill of lading copy or telex release. This protects both parties: buyer holds B/L until full payment, factory holds 30% as commitment.
Avoid factories that insist on 50%+ upfront or full payment before shipment for first orders. These terms are non-standard and indicate either poor cash flow or low buyer credibility.
Letters of Credit (L/C)
L/C at sight from a Tier-1 European or US bank de-risks the factory and unlocks 5-15% better pricing plus lower MOQ negotiability. Common above USD 50,000 orders. Bank fees run USD 200-600.
L/C with confirmation adds 0.25-0.50% on the contract value but provides additional security. Required for some West African and South American buyers.
Sample fee handling
Sample fees USD 50-200 per piece are standard. Most factories credit sample fees against the bulk order above 100 pieces. Always confirm credit in writing.
For custom development with multiple iterations, ask for a sample development package price covering 3-4 rounds. This avoids surprise charges mid-process.
Escrow and third-party payments
For first orders under USD 20,000, third-party escrow through Alibaba Trade Assurance, PayPal Goods & Services (with limits), or specialised B2B escrow services (Escrow.com, Hesabi) adds protection. Factory pays a small fee.
Most Turkish factories accept these for one-time orders. Long-term relationships transition to direct T/T or L/C once trust is established.
Currency and conversion risk
USD is the dominant currency for Turkish FOB pricing. EUR contracts are available for European buyers but typically priced 3-5% higher to absorb conversion risk.
Hedge currency only for orders above USD 100,000 with 60+ day delivery. For most buyers, forward contracts add cost without meaningful risk reduction.
Red flags to avoid
100% upfront payment, no sample, no factory address, no business registration, no past audit report. These are common scam patterns. Verify factory existence through chamber of commerce and request audit documents.
For high-value first orders, send a third-party inspector to the factory before deposit. SGS, Bureau Veritas and Intertek offer factory verification at USD 200-500.