Payment of international trade transactions can be accomplished on an “Open Account” basis. The seller ships the goods and forwards the documents directly to the buyer. The buyer clears the goods upon arrival. The buyer arranges for payment, either by bank draft or SWIFT transfer.
The seller loses control of the goods as soon as they are dispatched, because he/she has to trust that the buyer will remit the funds.
Open account is intended for importers and exporters who know and trust each other and are comfortable with the commercial and country risks associated with the transaction.
The buyer pays the seller before the goods have been shipped, or in some cases before the goods have been manufactured. Payment can be effected by bank draft or electronic payment. This method of payment favours the exporter, as the goods are only shipped (or in some cases manufactured) once payment has been received from the buyer (importer).
If you are exporting, on conclusion of the contact of sale, the buyer sends you advance payment. Kuveyt Turk will receive an inward transfer in your favour. You will need to supply Kuveyt Turk with the appropriate settlement instructions, as well as conversion instructions if the transfer is in foreign currency. You ship the goods and forward the documents to the buyer.
If you are importing, the contract of sale is concluded between you and the exporter. Contact Kuveyt Turk and request us to do a SWIFT transfer providing us with a proforma invoice, if available, and banking details such as seller’s name, account number, address, name of seller’s bank, branch name, amount, currency BIC code etc. Upon receipt of the goods and documents, you clear the goods.