An instrument (Bill of Exchange) drawn on and accepted by a bank in Malaysia, to finance the drawer’s business related purchases from or sales of goods to another person who may be a resident or non-resident, evidenced by proper and adequate documentation. It is drawn to finance purchases and / or credit sales.
- Finance Purchases and Credit Sales
- Drawn in Ringgit Malaysia only
- Tenor min 21 days, max 365 days (Purchases), 180 days (Sales)
- Min RM50,000 in multiples of RM1,000
- Invoice bunching is allowed with min RM1,000 per invoice
- Rollover /Extension of BA tenor is not allowed
- Margin of financing is up to 100% of the invoice value (at bank’s discretion)