by Ekrem Duman | Aug 1, 2026 | Contract Negotiation, Cost Reduction, Procurement, Supplier Payment & Invoice Controls, Vendor Management
⚡ TL;DRA LETTER OF CREDIT is a conditional bank undertaking that pays against a complying presentation under its terms and applicable rules. Procurement should design the credit around the purchase contract, feasible documents, shipment and presentation dates,...
by Ekrem Duman | Aug 1, 2026 | Contract Negotiation, Cost Reduction, Procurement, Supplier Payment & Invoice Controls, Vendor Management
⚡ TL;DRA BENEFICIARY is the party entitled to receive a payment, benefit or undertaking under an instrument such as a letter of credit, guarantee or insurance arrangement. Procurement must verify the legal identity, bank route, contract entitlement, sanctions status...
by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Cost Reduction, Procurement, Supplier Payment & Invoice Controls, Vendor Management
⚡ TL;DRCOD means Cash on Delivery: payment is collected when the goods are delivered. It is not the same as cash against documents, cash in advance or an ordinary invoice term. Procurement should define who may collect, what counts as delivery, how payment is...
by Ekrem Duman | Jul 25, 2026 | Cost Reduction, Procurement, Supplier Payment & Invoice Controls, Supply Chain, Vendor Management
⚡ TL;DRA COMMERCIAL INVOICE is the supplier’s commercial record of the transaction and a key source for customs, payment and landed-cost evidence. Procurement should define required fields, line-level identifiers, currency, Incoterm, origin, value, freight,...
by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Cost Reduction, Procurement, Supplier Payment & Invoice Controls, Vendor Management
⚡ TL;DRA BILL OF EXCHANGE is a payment instrument or draft that can sit alongside a purchase contract, documentary collection or letter of credit. Procurement should control who draws, accepts, endorses, presents and pays it; what shipment or invoice it references;...
by Ekrem Duman | Jul 25, 2026 | Contract Negotiation, Procurement, Supplier Payment & Invoice Controls, Supply Chain, Vendor Management
⚡ TL;DRAn ADVISING BANK communicates a letter of credit from the issuing bank to the beneficiary and may authenticate the message, but it does not automatically assume the issuing bank’s payment obligation. Procurement must align the LC with the purchase order,...
