OUR PRODUCTS AND SERVICE OFFERING
TRADE FINANCE & SUPPLY CHAIN SOLUTIONS
Import Letter of Credit (LC)
An import LC is issued by the Bank to enhance a customer’s creditworthiness by guaranteeing that its payment to a seller/supplier will be received on time and for the agreed amount. The Bank will pay the seller the value of the draft and/or documents, provided the terms and conditions set out in the Import LC are complied with.
Letter of Credit (LC) Confirmation
A LC confirmation provides a guarantee of payment to an (exporter) customer by the Confirming Bank in the event of non-payment by the importer bank, notwithstanding compliance of all terms and conditions under a LC.
Purchasing of Export Bills
The Bank finances a customer by purchasing sight export bills or discounting usance export bills. The customer enjoys improved cash flow with the immediate receipt of funds whilst pending payment from the importer.
Invoice Financing
Invoice financing helps the customer to finance its accounts receivables. The customer submits approved sales invoice to the Bank for prepayment. The funds can be used for any business purpose. Factoring is the simplest form of invoice financing as it allows the customer to sell its account receivables to the Bank. In exchange, the customer receives an immediate payment.
Trust Receipt (TR)
TR is short-term import loan provided to a customer to pay for the goods where title of goods is held by the Bank but allows the customer to take possession of the goods on trust for resale prior to paying the Bank on the TR due date. TR financing is applicable to goods imported under Documentary Credit or Import Collections.
Shipping Guarantee
A Shipping Guarantee (SG) is an indemnity given by the customer, countersigned by the Bank, to a shipping company or its agent to allow the shipping company to release the goods to the customer (as consignee named in the Bill of Lading) without the presentation of the original Bill of Lading.
Banker’s Guarantee (BG)
A BG is an undertaking given by the Bank to pay the beneficiary upon the receipt by the Bank of a written demand from the beneficiary within the BG validity period. It is normally used to secure either a financial or performance obligation of the customer.
Inventory Financing / Repurchase Agreement
Inventory financing and in-transit financing can be extended to customer via the transfer of ownership, as in the case of a repurchase agreement (repo) – where the Bank purchases the commodity with a commitment to sell it back at the expiry of the agreement. It can also be structured as pledge of collateral without a title transfer i.e. there is no transfer of ownership for the commodity pledged as collateral but the Bank has the right to the commodity if the customer defaults on the agreement.
Standby Letter of Credit (SBLC)
A SBLC is a legal document that guarantees the Bank's commitment of payment to a beneficiary in the event that the buyer or the bank's customer defaults on the agreement. It is also a common form of credit mitigant extended by a non-resident financial institution to a Malaysian borrower to guarantee its onshore borrowings from a Malaysian resident bank.
