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Transaction Banking
 Trade Finance
When you import and export from different shores, it is important to have seamless operational support. Receiving the right trade financing services can help you effectively manage risks associated with foreign trade, giving you the opportunity to expand your business more extensively. We offer a comprehensive range of trade & product services so that you can concentrate on the bigger picture.


 
Letter of Credit

LETTER OF CREDIT (LC)

An arrangement with the Bank that gives your suppliers an assurance of payment. Moreover, you are also assured that payments will only be released on presentation of stipulated documents that comply with all the terms and conditions in the LC.


BENEFITS

  • Advance payments need not be made for goods purchased
  • More transactions can be performed with foreign businesses through payment guarantee from LC
  • Ability to negotiate for better prices
  • Payment can only be made to supplier presenting all stipulated documents called for under the LC
  • Local or Foreign Currency Loans are available to finance the underlying goods
  • Hassle-free marine insurance coverage and other benefits by insuring locally when you import on FOB/CFR basis
 
 

IMPORT DOCUMENTARY COLLECTION

You can have the Bank act as an agent to handle all documentary collections against payment (OP) or acceptance (DA) from any of your suppliers.


BENEFITS

  • Payment will only be made on arrival of goods
  • You may arrange for financing to obtain documents and goods
  • A cheaper alternative compared to establishing LC
 
 

SHIPPING GUARANTEE (SG)

Shipping Guarantee is issued in favour of shipping company(carrier) on a pre-arranged basis to secure the release of goods in the event of non-receipt of shipping documents on arrival of the import vessel.


BENEFITS

  • Importer is able to gain possession of goods before arrival of original documents
  • Avoid demmurage charges
 

 
Trust Receipt

TRUST RECEIPT (TR)

Enables you to take delivery of your goods prior to payment of the bills. Essentially, you act as a trustee to the Bank to sell goods on behalf of the Bank and the proceeds from the sale of the goods are used to repay the Bank at a later date.


BENEFITS

  • Prompt payment to your supplier
  • You can take delivery of goods without immediate payment
  • You get to sell goods before payment
 
 

BANKER'S ACCEPTANCE (BA)

Another alternative financing facility available where you draw a Bill of Exchange on the Bank and this will be accepted by the Bank to finance your local and/or overseas purchases.


BENEFITS

  • Prompt payment to your supplier
  • Ability to pay cash to your supplier in order to obtain a discount
  • Flexible and simple documentation
  • Enable importer to collect goods immediately upon arrival
 

 
Advising Export Letter of Credit

ADVISING EXPORT OF LETTER OF CREDIT (ELC)

With our vast network of local branches and correspondent banks, we can act as the advising Bank for your ELCs issued by Banks throughout the world.


BENEFITS

  • ELC is authenticated to ensure genuineness and we can provide information on the issuing Bank
  • You can proceed with execution of the order and shipment of the goods as soon as you receive the ELC
  • Undertaking from the issuing Bank to pay upon presentation of compliant documents called for under the ELC
 
 

CONFIRMATION OF EXPORT OF LETTER OF CREDIT (ELC)

We can add confirmation to your ELC upon request. You will have an additional undertaking of the confirming Bank to pay upon presentation of compliant documents.


BENEFITS

  • Allows safer trade with unfamiliar and potentially risky countries
  • Opens up new markets to increase export business
  • Undertaking from issuing Bank and confirming Bank to honour payment
  • Overcome currency risks
  • Reduces payment risk from non-availability of 'hard' currencies
 
 

EXPORT DOCUMENTARY COLLECTION

You can have the Bank act as an agent to handle all documentary collections against payment (DP) or acceptance (DA) to any of your buyer's.


BENEFITS

  • Monitor the status and the collection of payments of your export bills
  • For sight bills, you can be assured that you will receive your export proceeds once the documents are released to your buyers
 

 
Export Bills Purchased / Bills Discounted

EXPORT BILLS PURCHASED / BILLS DISCOUNTED

A financing facility available to sellers and exporters by purchasing sight or discounting usance or documents under ELC.


BENEFITS

  • Bank handles and monitors collection of proceeds
  • Obtain advance or financing before actual payment or acceptance by buyer/importer
  • Allow you to invest funds in your business before receiving payment from buyer/importer
 
 

EXPORT NEGOTIATION (EN)

Export Negotiation is where the bank gives value to the beneficiaries of Letter of Credit, subject to the following conditions :
  • Documents are strictly in compliance to the terms and condition of the LC
  • LC issuing bank is acceptable to us.
  • The financing is with recourse to the LC beneficiaries

BENEFITS

  • Immediate funds to meet business needs
  • Improve Cash flow and working capital
 
 

EXPORT CREDIT REFINANCING (ECR)

Export Credit Refinancing is a short term trade financing scheme administered by Export-Import Bank of Malaysia Bhd. It is extended to exporters (direct & indirect) and local suppliers to promote the export of Malaysian manufactured & agricultural products and selected primary commodities that have significant value-added components and utilize local indigenous resources.

Types of facilities available to exporters :
  • Pre-shipment : financing before exportation of goods. After securing the purchase order for the goods, you can proceed to finance working capital requirement for production of merchandise like sourcing raw material and incurring the necessary overheads.
  • Post-shipment : financing after the shipment of the goods on credit or usance terms. The facility will give immediate funds after the goods have been shipped out on credit basis. Hence, this will release your tied-up cash flow.

BENEFITS

  • Guarantee is issued in favour of shipping company(carrier) on a pre-arranged basis to secure the release of goods in the event of non-receipt of shipping documents on arrival of the import vessel. 
 

 
Foreign Currency Trade Loan (FCTL)

FOREIGN CURRENCY TRADE LOAN (FCTL)

We finance importation of your goods including capital goods such as machinery and plants from foreign suppliers, in USD and other major foreign currency (FC).


BENEFITS

 

  • Saves on foreign exchange conversion as financing remains in foreign currency.
  • Can be partially or early settled subject to penalty(funding loss) to leverage on any unanticipated funds receivable to minimize financing cost.
  • Margin of financing is up to 100% of the invoice value.
  • Flexibility of payment in RM or USD at maturity.
  • Minimize foreign exchange risk by matching outstanding FC loans with the incoming FC receivables.
  • Able to meet short term cash flow gap.
 
 

PROMISSORY NOTES (PN)

A financing facility available to sellers and exporters by purchasing sight or discounting usance or documents under ELC.


BENEFITS

  • Alternative trade financing product that can also finance pre-shipment advances, trade related services, invisibles and utilities.
  • Flexible and can be early settled.
  • Increase cash flow and working capital
  • Margin of financing is up to 100% of invoice value
 
 

BANK GUARANTEES

Bank Guarantee is an undertaking by the Bank to pay the beneficiary the amount specified in the guarantee of your performance or financial standing that may be needed in your business dealing in the event of non-perfomance of a permissible contract. ABMB is able to support your business by providing the following types of guarantees.


BENEFITS

  • Tender Guarantee
  • Performance Guarantee
  • Guarantee for Advance Payment
  • Supply Guarantee
  • Guarantee for Sub-Contract
  • Guarantee for Exemption of Custom Duties 
 
Next Steps

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By Phone

Call us at 1-300-80-3388 and we'll be happy to help you out.

Face to Face

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