Turkey sits at the twenty-seventh largest export economy in the world and in terms of difficulty, is the fortieth most complex economy according to the Economic Complexity Index (ECI). In recent years, Turkey exported over $160B and imported around $220B, which resulted in a negative trade balance of around $60B. In recent years, the GDP of Turkey was around $820B, with a GDP per capita of around $18k.

The main exports of Turkey are machinery, transport materials and goods, which are already manufactured. These consist of cars (around $7B), refined petroleum (around $5B), raw iron bars ($4B), vehicle parts ($4B) and delivery trucks (around $4B). The main imports are gold ($16B), refined petroleum (under $16B), cars ($9B), scrap iron ($7B) and petroleum gas ($5B). When looking at the main export destinations, these are Germany ($15B), Iraq (around $12B), UK ($9B), France (under $8B) and Italy (around $7B). The main import origins are Germany (around $25B), China ($24B), Russia (under $15B), Italy ($13B) and the United States ($12B). In terms of location, Turkey borders Azerbaijan, Iran, Georgia, Armenia, Iraq, Syria, Greece and Bulgaria by land and Romania, Egypt, Cyprus, Ukraine and Russia, by sea.

Chart Showing GDP Growth Compared to rest of world

Export finance is a revolving facility which lenders offer – it enables businesses to buy stock and can help ease the pressure from cash flow issues.

Often, an alternative financier will fund all of the cost of the receivables, including charges (e.g. VAT taxes).

Trade finance offers benefits over more traditional bank funding including asset finance or loans. Trade finance provides quick funding without affecting existing bank relationships.

How does it work?
If you’re a firm importing or exporting stock supplies from or to other countries, then a trade finance facility would help you to fund this through offering a LC (letter of credit) or some form of cash advance.

I’m looking to import from Turkey, how can Trade Finance Global help, and how does it work?
If you are looking to import inventory from other countries, you may require import finance, which is an agreement between yourself (the importer) and the foreign exporter. A non-bank lender would act as the intermediary, paying the foreign exporter on your behalf until you get the stock supplies and have then sold them to your customer. Repaying the funder then happens over an agreed period of time.