Payment Terms and Trade Finance for Turkey Apparel Orders
Standard Turkish factory terms: 30% advance T/T, 70% against bill of lading copy. First-time orders may require 50/50. Established relationships move to net-30 or net-60. Letters of credit are accepted by larger Bursa and Denizli mills. This guide covers every payment vehicle, FX risk, and dispute mechanism.
Frequently asked questions
What payment terms are standard with Turkish factories?
30% deposit on PO, 70% against B/L copy is industry norm. New buyers often start at 50/50 or 100% before shipment. Trusted accounts negotiate net-30 or even net-60 after 3-4 successful orders.
Do Turkish factories accept letters of credit?
Mid and large factories (200+ machines) accept irrevocable L/C at sight from reputable banks. Small Merter workshops prefer T/T because L/C bank fees eat 1.5-2.5% of small orders.
Is escrow available for Turkey sourcing?
Yes - Alibaba Trade Assurance covers some listed factories. Independent escrow via Payoneer or Western Union Business Solutions works for $5K-$50K orders. Above $100K, L/C is more cost-effective.
What currency do Turkish factories quote in?
USD or EUR for export. Turkish Lira pricing is offered for Turkey-domestic sales only. Lock the FX at PO date to avoid Lira volatility.
How is a payment dispute resolved?
Direct negotiation first. Then via the buyer's chamber of commerce (ITKIB) or a Turkish trade lawyer. ICC arbitration in Istanbul is available but rare under $250K orders.
Related sourcing topics
Need help applying this in your next PO?
Talk to our sourcing team. We have walked over 200 brands through Turkish factory onboarding since 2018.