How Do Payment Terms Work in Raw Material Purchases?

In cash payment, the amount is collected at or before delivery of the goods. In deferred payment, payment is postponed to a certain period afterward (e.g. 30, 60 or 90 days) — the payment term is generally set based on the commercial history and mutual trust between the parties.

In B2B trade in Türkiye, deferred payments are frequently made using negotiable instruments — checks and promissory notes (bono/senet). These instruments give the buyer flexibility in cash flow, while carrying a risk for the seller of non-collection at maturity — for this reason most suppliers evaluate payment terms and instruments on a customer-by-customer basis.

A seller can convert a deferred check, promissory note or invoice receivable into cash before its due date by transferring it, at a discount, to a factoring company. It is a widely used financing tool in the sector for managing cash flow and keeping the supply chain running without interruption.

We clarify our current payment terms and any available payment-term options with you during discussions — this article is intended to provide a general framework and does not reflect the exact terms of our company policy.